Cima C01 Exam Question No 16

Question No 16:

Based on the data below, what is the amount of the overhead under-/over-absorbed?

Budgeted overheads                      $493,200
Budgeted machine hours             10,960 
Actual machine hours                  10,493
Actual overheads                          $514,157

A. $20,957 under-absorbed
B. $21,015 over-absorbed
C. $21,015 under-absorbed
D. $41,972 under-absorbed

Answer: D