Taking into account of normal working of the factory, overheads are recovered on production @ ₹ 3.50…
Absorbed overhead exceeds actual overhead, so the excess is over-absorption. Applying the absorption rate and subtracting actual expenses gives ₹11,200. The calculations are…
Choose your answer
Taking into account of normal working of the factory, overheads are recovered on production @ ₹ 3.50 per hour. The actual hours worked during the month of March 2025 were 17600. Total factory expenses incurred during this month recorded at ₹ 50,400. The situation is called _____.
Answer and explanation
Correct answer D
Absorbed overhead exceeds actual overhead, so the excess is over-absorption. Applying the absorption rate and subtracting actual expenses gives ₹11,200. The calculations are and .
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