A-LevelAccountingAbsorption CostingFeb/Mar 2021Paper 1 Q251 Mark
A business absorbs its overheads on the basis of machine hours. The following information is provided. actual budgeted overheads $564 000 $560 000 machine hours 6700 7000 By how much are overheads under or over-absorbed?
Aover-absorbed by $4000
Bunder-absorbed by $4000
Cover-absorbed by $28000
Dunder-absorbed by $28000
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of absorption costing 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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