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A company uses a plant wide predetermined overhead absorption rate, based on direct labour hours, to absorb manufacturing ove
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answer is a. 4,150 over absorbed

budgeted overhead rate = 137,500 / 22,000 = 6.25 per labour hour

actual overhead rate = 139,600 / 23,000 = 6.07 per labour hour

difference = 6.25 - 6.0695 = 0.1804 (over absorbed)

over absorbed overhead = 23,000 x 0.1804 = 4,150

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