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A company uses absorption costing with a predetermined hourly fixed overhead rate. The following situations arose last year. Would each of these situations cause overheads
A company uses absorption costing with a predetermined hourly fixed overhead rate. The following situations arose last year. Would each of these situations cause overheads to be under absorbed or over absorbed? Under absorbed Over absorbed Actual overhead expenditure was less than the budgeted expenditure Actual hours worked were less than the budgeted hours used to set the predetermined overhead absorption rate
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