A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2019 · 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

B: $11250 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 2019 Paper 1 Variant 2, question 25.

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