Insufficient Information for Overhead Absorption Calculation

Steps:

• Compute absorbed overhead using actual hours and budgeted rate: 15,000 hours × $50/hour =$750,000.
• Determine budgeted overhead: 12,000 hours × $50/hour =$600,000.
• Calculate over/under absorption as absorbed overhead minus actual overhead incurred.
• Actual overhead costs are not provided, preventing computation of the variance.

Why B is correct:

• Not enough information; actual overhead required per standard absorption accounting formula.

Why the others are wrong:

• A, C, D: All assume unavailable actual overhead data, leading to invalid calculations.

Final answer: Not enough information.