A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2018 · Q281 Mark

A business provides the following information. budgeted overhead costs $280 000 budgeted labour hours 25 000 budgeted machine hours 20 000 actual overhead cost $336 000 actual labour hours 35000 actual machine hours 30 000 What is the over-absorption or under-absorption of overheads?

A$56 000 over absorbed

B$56 000 under absorbed

C$84 000 over absorbed

D$84 000 under absorbed

✓ Correct answer

A: $56 000 over absorbed

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2018 Paper 1 Variant 2, question 28.

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