In a manufacturing business the following could occur. 1 Actual overheads paid are less than budgeted overheads. 2 Actual overheads paid are more than budgeted overheads. 3 Actual units produced are less than budgeted units. 4 Actual units produced are more than budgeted units. Which situations would result in an under absorption of overhead expenditure?
✓ Correct answer
C: 2 and 3
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Traditional costing methods and see which topics are most likely to come up next.
Sign up free →