A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2022 · Q261 Mark

What would cause overheads to be over-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

D: Overhead incurred is less than overhead absorbed.

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2022 Paper 1 Variant 2, question 26.

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