fixed

$2,400$

$2,400$

The normal level of activity for the year is $800$ units. Fixed costs are incurred evenly throughout the year, and actual fixed costs are the same as budgeted.

There were no inventories of Claud at the beginning of the year. In the first quarter, $220$ units were produced and $160$ units sold.

Required

$($a$)$ Calculate the fixed production costs absorbed by Clauds in the first quarter if absorption costing is used.

$($b$)$ Calculate the under$/$over recovery of overheads during the quarter.