A company uses a blanket overhead absorption rate of $5 per direct labour hour.Actual overhead expenditure in a period was as budgeted. The under/over absorbed overhead account for the period have the following entries: DR CR $ $ Productionoverhead 4,000 Profit or lossaccount 4,000 Which of the following statements is true?
A.
Actual direct labour hours were 800 less than budgeted
B.
Actual direct labour hours were 800 more than budgeted
C.
Actual direct labour hours were 4,000 less than budgeted
D.
Production overhead was over absorbed by $4,000