A-LevelAccountingOverhead AbsorptionOct/Nov 2020Paper 1 Q251 Mark
A business absorbs its fixed overheads using direct labour hours. The following information is provided. actual budgeted overheads $600 000 $508 000 labour hours 14 300 12700 Which statement is correct?
AOverheads were over absorbed by $28000.
BOverheads were under absorbed by $28000.
COverheads were over absorbed by $92000.
DOverheads were under absorbed by $92 000.
✓ 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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