A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2017 · Q261 Mark

The table contains information provided by a company. [Table: budgeted direct labour hours 8000, actual direct labour hours worked 7500, budgeted overhead expenditure $104000, actual overhead expenditure $112500] What is the over or under recovery of overheads?

A$8500 over recovered

B$8500 under recovered

C$15000 over recovered

D$15000 under recovered

✓ Correct answer

D: $15000 under recovered

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2017 Paper 1 Variant 2, question 26.

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