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A-LevelAccountingCosting (Absorption Costing)Oct/Nov 2017Paper 1 Q241 Mark

The following information is forecast for next period. [Table: units, opening inventory 54275, closing inventory 60120, $, profit using marginal costing 300600, profit using absorption costing 390780] What is the overhead absorption rate per unit?

A$5.00
B$6.50
C$7.20
D$15.43

✓ Correct Answer

The correct answer is D: $15.43

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Costing (Absorption Costing) in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2017 examination, Paper 1 Variant 2.

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