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A production department has a budgeted production overhead of lr $180,000 and budgeted activities of 45,000 machines hours. overhead are absorbed on a machine hours basis.
Required:
Problem 1: Calculate the under /over absorbed and note the reasons for the under / overhead absorption in the circumstances.
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Provide guidance relating to typical activities, examples of cost pools and cost drivers, and the overheads for Housebuilding company like Bovis Homes.
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