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【论述题】
Calculate the overhead cost per course for auditing using traditional volume based absorption costing to the nearest dollar.
Calculate the figure for over/(under) absorption of production overheads for Period 3
$ _____over/under
When Solo compares their profits reported under absorption costing and marginal costing during a period when the level of inventory increased:
Absorption costing profits will be higher and closing inventory valuations lower than those under marginal costing.
Absorption costing profits will be higher and closing inventory valuations higher than those under marginal costing.
Marginal costing profits will be higher and closing inventory valuations lower than those under absorption costing.
Marginal costing profits will be higher and closing inventory valuations higher than those under absorption costing.
How is an overhead absorption rate calculated?
Over-absorption means that the overheads charged to the cost of sales are greater than the overheads actually incurred.