Question 7: A company has been using an overhead absorption rate of 10.50 per machine hour in its Assembly department. During the year the overhead expenditure amounted to 28,445 and 2,410 machine hours were incurred. Which of the following is correct? A. Overheads were over-absorbed by 3,140 B. Overheads were under-absorbed by 3,140 C. Overheads were under-absorbed by 31,400 D. Overheads were over-absorbed by 31,400