A-LevelAccountingOverhead Accounting (Absorption Costing)Feb/Mar 2023Paper 1 Q261 Mark
A manufacturing business makes a single type of product. It has two production departments, machining and assembly. A maintenance department provides services to the production departments. Budgeted figures for these departments are shown. overheads machining $800 000 assembly $400 000 maintenance $300 000 production units 200 000 50 000 The business uses a cost per unit rate to absorb overheads. Maintenance department overheads are transferred to production departments in proportion to output. Which figures are correct for the machining department?
Aoverheads $950 000 cost per unit $4.75
Boverheads $1000 000 cost per unit $5.00
Coverheads $1040 000 cost per unit $4.16
Doverheads $1040 000 cost per unit $5.20
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of overhead accounting (absorption 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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