Under and over absorption, Accounting Basics

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A company absorbs overheads on machine hours that are budgeted at 11,250. The budgeted overhead is $281 250. 

Results illustrate actual hours of 10 980 and overhead of $276 652.

What is the under/over-absorption?

A. overhead over-absorbed by $2152

B. overhead over-absorbed by $4598

C. overhead under-absorbed by $2152

D. overhead under-absorbed by $4598


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