A-LevelAccountingOverhead Accounting (Absorption Costing)Feb/Mar 2023Paper 1 Q281 Mark
A company has two production departments, manufacturing and assembly, and a stores service department. The overheads are apportioned to each department using the appropriate costing information supplied. manufacturing assembly stores direct labour hours 8400 33600 machine hours 20 160 6720 total cost of the stores department $32 800 number of store requisitions 3000 2000 What are the overhead absorption rates for the two production departments in respect of the stores?
Amanufacturing department: $0.39 direct labour hour; assembly department: $0.98 machine hour
Bmanufacturing department: $0.58 direct labour hour; assembly department: $0.65 machine hour
Cmanufacturing department: $0.65 machine hour; assembly department: $0.58 machine hour
Dmanufacturing department: $0.98 machine hour; assembly department: $0.39 machine hour
✓ 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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