Which two factors would mean fixed overheads are under-absorbed?

1 actual hours worked are less than budgeted hours
2 actual hours worked are more than budgeted hours
3 actual output is less than budgeted output
4 actual output is more than budgeted output

Question

Which two factors would mean fixed overheads are under-absorbed?

1 actual hours worked are less than budgeted hours
2 actual hours worked are more than budgeted hours
3 actual output is less than budgeted output
4 actual output is more than budgeted output

Oracle Prep · Accepted Answer

The correct answer is A: 1 and 3

Which two factors would mean fixed overheads are under-absorbed? 1 actual hours worked are less than budgeted hours 2 actual hours worked are more than budgeted hours 3 actual output is less than budgeted output 4 actual output is more than budgeted output

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