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Quiz 2 Table of Contents

Part 3 of 3 - Part 3

Question 30 of 30 0.5 Points A Ltd operates a standard costing system and absorbs overheads on the basis of standard labour hours. There were 500,000 labour hours budgeted and the budgeted production overheads were GHS300,000 for the forthcoming year. The company budgeted to produce 125,000 units. The actual results for the period were as follows: Overheads GHS350,000, Output is 130,000 units and Labour hours is 450,000 hours. Which ONE of the following statements is correct? A. Overheads were GHS38,000 over-absorbed. B. Overheads were GHS38,000 under-absorbed. C. Overheads were GHS80,000 over-absorbed. D. Overheads were GHS80,000 under-absorbed.