170all lla22% D 10:56B/sQuestion 2List as many possible bases of absorption(or 'overhead recovery rates') as you canthink of.Page BreakQuestion 3The total production overhead expenditure of the company in the questions above was $176,533 and itsactual activity was as follows.Machine shop A Machine shop BAssembly21,900Direct labour hours8.2006,50018,700Machine usage hours7.300RequiredUsing the information in and results of the previous questions, calculate the under- or over-absorption ofoverheads.Question 4A production department has a budgeted production overheads of $180,000 and budgeted activity of45,000 machine hours. Overheads are absorbed on a machine hour basis.RequiredCalculate the under-lover-absorbed overhead, and note the reasons for the under-/over-absorption in thefollowing circumstances.(a)Actual overheads cost $170,000 and 45,000 machine hours were worked.(b)Actual overheads cost $180,000 and 40,000 machine hours were worked.(c)Actual overheads cost $170,000 and 40,000 machine hours were worked.

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Answered: List as many possible bases of…

Business

Accounting

List as many possible bases of absorption (or 'overhead recovery rates') as you can think of.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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