Question 9.5: An online book retailer allocates equal overhead to each boo...

Management Accounting in a Dynamic Environment

An online book retailer allocates equal overhead to each book sold. At the beginning of the year, the retailer estimates that 1 million books will be sold and that overhead will be $2 million. What is the over- or under absorbed overhead, if 1 million books are sold and overhead is $2.1 million?

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