Overhead absorption variance calculation Steps:

• Calculate predetermined absorption rate: budgeted overheads ÷ budgeted direct labour hours = 48,000 ÷ 12,000 = $4 per hour.
• Calculate absorbed overheads: absorption rate × actual direct labour hours = $4 × 19,000 =$76,000.
• Calculate variance: absorbed overheads − actual overheads = $76,000 −$57,000 = $19,000 over absorbed. Why C is correct:
• Over absorption is defined as the excess of absorbed overheads over actual overheads using the predetermined rate formula, resulting in $19,000 here. Why the others are wrong:
• A. $14,000 over ignores the exact variance of$19,000 from the calculation.
• B. Under absorption assumes actual overheads exceed absorbed, but absorbed exceeds actual.
• D. $9,000 under assumes a smaller opposite variance not supported by the figures. Final answer: C