A company uses absorption costing with a predetermined hourly overhead absorption rate. The following situations
have both occurred:
(i) Actual overhead expenditure exceeded planned expenditure; and
(ii) Actual hours worked were less than the planned hours.
Which of the following statements is correct?
A Situation (i) would cause overheads to be over absorbed and situation (ii) would cause overheadsto be under
absorbed.
B Situation (i) would cause overheads to be under absorbed and situation (ii) would cause overheads to be over
absorbed.
C Both situations would cause overheads to be over absorbed.
D Both situations would cause overheads to be under absorbed. D | 
发表于 2008-5-6 16:06
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