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Overheads

Fin uses a job-order costing system, he uses machine hours as the basic for overhead allocation in ite cost centre No.10. Cost data for the production is: Estimate..........Actual

Overheade.............85,000..............82,605

Machine hours.........7,500................7,210

Prime cost.............125,000...........126,000

What is the predetermined overtime rate?

What is the amount of over-or-under absorbed overhead?

Please help and if you can please show the working.

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