A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2019 · Q241 Mark

A company uses machine hours to absorb its overheads. The following information is provided for a month. actual budgeted overheads $237010 $253450 machine hours 12460 13700 Which statement regarding overheads is correct?

A$6500 over-absorbed

B$6500 under-absorbed

C$16440 over-absorbed

D$16440 under-absorbed

✓ Correct answer

B: $6500 under-absorbed

Oracle Prep sorts past-paper questions by topic, so you can drill Traditional costing methods and see which topics are most likely to come up next.

Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2019 Paper 1 Variant 2, question 24.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Samuel manufactures a single product. Total cost per unit is $70 when production is 100 units per week, and $62.50 wh…

A business absorbs overheads based on machine hours. During the last quarter it had the following budgeted and actua…

Actual output exceeds budgeted output. Which cost is higher than budgeted?

Which statements describe a capital reserve? 1 It is a reserve arising from a gain which is not yet realised. 2 It is…

The following is an extract from a statement of changes in equity. ordinary share general retained share capital prem…

The following has been extracted from the financial statements of a business. $ revenue 135000 total capital employed…