1 Q.1 (2 marks) Company QxZ LTD has an overhead absorption rate of 4.25 per machine hour, based on a budgeted level of 12,400 machine hours. The actual machine hours worked were 2% more than the budgeted machine hours, and the actual overhaed expenditure incurred was 56,389. Which of the following statements is correct? Please select one alternative: O Overhead was 1,054 over absorbed Overhead was 3,689 under absorbed O Overhead was 2,635 under absorbed o Overhead was 3,689 over absorbed