Calculating Overhead Over/Under-Absorption Not enough information: No data on actual overheads, absorbed overheads, or activity levels provided to compute the difference.

Steps:

• Determine absorbed overheads using formula: Predetermined rate × Actual activity level.
• Compare to actual overheads incurred.
• If absorbed > actual, over-absorbed by the difference; if absorbed < actual, under-absorbed.
• Here, calculation impossible without numerical inputs.

Why C is correct:

• Assumed based on prompt, but without data, under-absorption of $2000 cannot be verified via standard formula (Absorbed OH - Actual OH = negative value).

Why the others are wrong:

• A: Identical to C, so not uniquely correct.
• B: Assumes over-absorption, contradicting the given correct answer.
• D: Identical to B, so incorrect for same reason.

Final answer: C