A Company Had an Under Recovery of £200,000 with a Budgeted

question 6

Multiple Choice

A company had an under recovery of £200,000 with a budgeted overhead of £1,000,000. If its estimated overhead hours were 20,000 and its actual overhead hours were 22,000, calculate the actual overhead cost.

• A) £1,300,000
• B) £800,000
• C) £1,200,000
• D) £1,100,000

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Definitions:

Target Firm

A company that is the subject of a takeover attempt or merger proposal by another company.