Anacom Company has expected overhead fixed costs of ($100,000.) The estimated variable overhead costs are ($400,000,) assuming

Question:

Anacom Company has expected overhead fixed costs of $$100,000.$ The estimated variable overhead costs are $$400,000,$ assuming the allocation base is 50,000 machine hours. Anacom has one overhead application rate that includes both variable and fixed costs. The actual machine hours are 60,000 and the actual overhead is \($550,000.

What\) is the over- or under-absorbed overhead?

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