Which of the following could cause an under- absorption of overhead expenditure? 1. Absorption rate calculated on
Question:
Which of the following could cause an under- absorption of overhead expenditure?
1. Absorption rate calculated on actual production and actual number of units produced
2. Units produced exceeding the budgeted production
3. Units produced being less than the planned production
4. Overhead expenditure exceeding budget
A. 1 and 2
B. 1 and 3
C. 2 and 4
D. 3 and 4
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An underabsorption of overhead expenditure occurs when the actual overhead costs incurred are greate...View the full answer
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