A-LevelAccountingCosting / Overhead AbsorptionOct/Nov 2018Paper 1 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?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is A: $56 000 over absorbed.

Q: What topic does this question test?

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

A$56 000 over absorbed

B$56 000 under absorbed

C$84 000 over absorbed

D$84 000 under absorbed

✓ Correct Answer

The correct answer is A: $56 000 over absorbed

📋 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 / Overhead Absorption in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2018 examination, Paper 1 Variant 2.

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