Estimate which of the statements is correct

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Question 1: Direct cost $12, Variable overhead $5, Fixed overhead $9 and total cost per unit $26. In the period covered by the budget: Actual sales were 3,500 units and inventory levels decreased by 300 units. Actual fixed overhead expenditure was 5% above that budgeted. Other costs were as budgeted per unit. Determine which of the following statements is correct.

Option 1: Total overheads in the period were $1,450 over-absorbed

Option 2: Total overheads in the period were $450 over-absorbed

Option 3: Total overheads in the period were $1,450 under-absorbed

Option 4: Total overheads in the period were $450 under-absorbed

Reference no: EM132548551

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