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A-LevelAccountingAbsorption CostingFeb/Mar 2020Paper 1 Q251 Mark

The following information is available for a business. fixed overheads budget $180000, actual $190000 hours budget 10000, actual 11000 What was the over-absorption or under-absorption of fixed overheads?

A$8000 over
B$8000 under
C$10000 over
D$10000 under

✓ Correct Answer

The correct answer is A. This question tests the candidate's understanding of absorption costing within the Accountingsyllabus. The examiner's mark scheme requires...

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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) Feb/Mar 2020 examination, Paper 1 Variant 2. It tests the topic of Absorption Costing and is worth 1 mark.

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