Basic. A company absorbs overheads on machine hours. In a period, actual machine hours were 17 285,

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Basic. A company absorbs overheads on machine hours.

In a period, actual machine hours were 17 285, actual overheads were £496 500 and there was under-absorption of £12520.

What was the budgeted level of overheads?

(a) £483 980

(b) £496 500

(c) £509020

(d) It cannot be calculated from the information provided.

CIMA Stage 1 Cost Accounting

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