170 all lla 22% D 10:56 B/s Question 2 List as many possible bases of absorption (or 'overhead recovery rates') as you can think of. Page Break Question 3 The total production overhead expenditure of...

Extracted text: 170 all lla 22% D 10:56 B/s Question 2 List as many possible bases of absorption (or 'overhead recovery rates') as you can think of. Page Break Question 3 The total production overhead expenditure of the company in the questions above was $176,533 and its actual activity was as follows. Machine shop A Machine shop B Assembly 21,900 Direct labour hours 8.200 6,500 18,700 Machine usage hours 7.300 Required Using the information in and results of the previous questions, calculate the under- or over-absorption of overheads. Question 4 A production department has a budgeted production overheads of $180,000 and budgeted activity of 45,000 machine hours. Overheads are absorbed on a machine hour basis. Required Calculate the under-lover-absorbed overhead, and note the reasons for the under-/over-absorption in the following circumstances. (a) Actual overheads cost $170,000 and 45,000 machine hours were worked. (b) Actual overheads cost $180,000 and 40,000 machine hours were worked. (c) Actual overheads cost $170,000 and 40,000 machine hours were worked.