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The Fixed Overhead Absorption Rate used by a company is 15 per machine hour. At the end of the year, the actual Fixed Manufacturing Overheads

The Fixed Overhead Absorption Rate used by a company is 15 per machine hour. At the end of the year, the actual Fixed Manufacturing Overheads incurred is 135,000 and the actual number of machine hours employed was 10,000 machine hours. Required Calculate the over- / under- absorption of the Fixed Manufacturing Overheads (2 marks)

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