Reference no: EM132738951

Problem 1: Under-recovery of overheads occurs when:

a. The amount of actual overheads incurred is less than the overheads that have been charged to production.

b. The amount of overheads charged to production is lower than the actual overheads incurred.

c. The amount of budgeted overheads is less than the actual overheads incurred.

d. Actual overheads have fallen in relation to what they were expected to be.

Problem 2: A company absorbs factory overheads at a rate of N$25 per direct labour hour. At the beginning of the year, the company estimated that the direct labour hours were 10 000 hours. During the year, the actual direct labour hours and actual manufacturing overheads costs incurred were 12 000 hours and NS350 000, respectively. The amount of factory overheads charged during the period was?