How might an under-absorption of overheads arise?
1 Overheads have been over-budgeted.
2 Overheads have been under-budgeted.
3 Production was less than budgeted.
4 Production was more than budgeted.
1 )
1 and 3
2 )
1 and 4
2 and 3
4 )
2 and 4
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