A-LevelAccountingCosting Methods (Overhead Absorption)Feb/Mar 2016Paper 1 Q231 Mark
A production centre uses 20000 machine hours and 17000 labour hours each month. Which formula is used to calculate the overhead absorption rate?
Atotal machine hours / total overhead cost
Btotal overhead cost / total labour hours
Ctotal overhead cost / total (labour hours + machine hours) ÷ 2
Dtotal overhead cost / total machine hours
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of costing methods (overhead absorption) 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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