A-LevelAccountingCostingFeb/Mar 2022Paper 1 Q251 Mark
A company has two departments in its factory. The details are shown. Machining department: budgeted fixed overheads $180000, budgeted hours 6000. Assembly department: budgeted fixed overheads $90000, budgeted hours 10000. Total budgeted fixed overheads $270000, total budgeted hours 16000. What is the fixed overhead absorption rate per hour in the machining department?
A$11.25
B$16.875
C$30
D$45
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of 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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