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A-LevelAccountingOverhead AbsorptionOct/Nov 2019Paper 1 Q251 Mark

A manufacturing business has provided the following information. budgeted labour hours 12000 budgeted overhead absorption rate $7.50 per labour hour actual overhead cost $101250 actual labour hours 15000 What is the over or under absorption of overheads?

A$11250 under absorbed
B$11250 over absorbed
C$20 250 under absorbed
D$20 250 over absorbed

✓ Correct Answer

The correct answer is B. This question tests the candidate's understanding of 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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About This A-Level Accounting Question

This multiple-choice question appeared in the Cambridge A-Level Accounting (9706) Oct/Nov 2019 examination, Paper 1 Variant 2. It tests the topic of Overhead Absorption and is worth 1 mark.

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