A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2023 · Q261 Mark

What would cause overheads to be under absorbed?

AOverhead absorbed is greater than overhead budgeted.

BOverhead absorbed is less than overhead budgeted.

COverhead incurred is greater than overhead absorbed.

DOverhead incurred is less than overhead absorbed.

✓ Correct answer

C: Overhead incurred is greater than overhead absorbed.

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2023 Paper 1 Variant 2, question 26.

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