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NEW QUESTION: 1
A company manufactures a single product and absorbs fixed production overheads at a predetermined rate based on budgeted expenditure and budgeted units.
Which TWO of the following would definitely lead to an over absorption of fixed production overheads?
A. Actual fixed production overhead expenditure is higher than budgeted and production units are as budgeted.
B. Actual fixed production overhead expenditure is less than budgeted and production units are as budgeted.
C. The actual number of units produced are greater than budgeted and the actual fixed production overhead expenditure is as budgeted.
D. Actual number of units produced are greater than actual units sold and the actual fixed production overhead expenditure is as budgeted.
E. The actual number of units produced are less than budgeted and the actual fixed production overhead expenditure is higher than budgeted.
Answer: B,C