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A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2021 · 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

D: under-absorbed by $28000

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About this question

Topic
Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, Feb/Mar 2021 Paper 1 Variant 2, question 25.

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