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A cost centre has an overhead absorption rate of $4.25 per machine hour, based on a budgeted activity level of 12,400 machine hours. In the

A cost centre has an overhead absorption rate of $4.25 per machine hour, based on a budgeted activity level of 12,400 machine hours.

In the period covered by the budget, actual machine hours worked were 2% more than the budgeted hours and the actual overhead expenditure incurred in the cost centre was $56,389.

What was the total over or under absorption of overheads in the cost centre for the period?

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