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The following information was extracted from Douglas Manufacturing Company for the year 2017: Actual Budgeted Production overhead cost (Rs.) 90,000 Direct labour (hours) 110,000

The following information was extracted from Douglas Manufacturing Company for the year 2017: Actual Budgeted Production overhead cost (Rs.) 90,000 Direct labour (hours) 110,000 10,500 11,000 Based on the above information, production overhead cost is: (1) Under absorbed by Rs.15,000/-. (2) Over absorbed by Rs.15,000/-. (3) Under absorbed by Rs.20,000/-. (4) Over absorbed by Rs.20,000/-

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