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<p>A company uses absorption costing with a predetermined hourly overhead absorption rate. The following situations<br/>have both occurred:<br/>(i) Actual overhead expenditure exceeded planned expenditure; and<br/>(ii) Actual hours worked were less than the planned hours.<br/>Which of the following statements is correct?<br/>A Situation (i) would cause overheads to be over absorbed and situation (ii) would cause overheadsto be under<br/>absorbed.<br/>B Situation (i) would cause overheads to be under absorbed and situation (ii) would cause overheads to be over<br/>absorbed.<br/>C Both situations would cause overheads to be over absorbed.<br/>D Both situations would cause overheads to be under absorbed.</p><p>D</p><p> </p> aX
X :) c b A d look 3q 顶aa
aa <p>D</p> d页:
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