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?
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. This question tests the candidate's understanding of costing / overhead absorption within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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