A company has been using an overhead absorption rate based on direct labour cost. During the...

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A company has been using an overhead absorption rate based on direct labour cost. During the year, the company incurred N$300 000 and N$150 000, in actual manufacturing overhead costs and direct labour costs, respectively. The budgeted manufacturing overhead rate used during the past year was 150% of direct labour cost. The under/over absorbed factory overhead cost for the period was: Answer: A company has been using an overhead absorption rate based on direct labour cost. During the year, the company incurred N$300 000 and N$150 000, in actual manufacturing overhead costs and direct labour costs, respectively. The budgeted manufacturing overhead rate used during the past year was 150% of direct labour cost. The under/over absorbed factory overhead cost for the period was: Answer: