2007 Jun. multiple choice 11
 
A company uses absorption costing with a predetermined hourly fixed absorption absorption rate. The situations arose last month:
 
(i) Actual overhead expenditure was less than the planned expenditure.
 
(ii)Actual hours worked exceeded the planned hours.
 
 
answer:both (i) and (ii) situations would cause overheads to be over absorbed..
 
 
(ii)的情况我没有想明白，我的答案是under
 

呵呵，你可以假设该公司的B（Budget） o/h(overheads)是1000￥， Budget level of activity是100 hour：

根据公式：OAR=Budget overheads/Budget level of activity=10， 也就是题目中的：predetermined hourly fixed absorption rate。

在第二种情况下：Actual hours worked exceeded the planned hours，假设Actual hours是120小时。

那么Overheads absorbed= predetermined hourly fixed absorption rate*Actual hours 

                      = 10*120

                      = 1200￥

自然比1000￥的预算吸收成本高啦，所以是over呵呵。