A-LevelAccountingCosting Methods (Overhead Absorption)Feb/Mar 2016Paper 1 Q241 Mark
The following information is available. budget actual overheads $60000 $66 000 direct labour 30 000 hours 35 000 hours The overhead absorption rate is based on direct labour hours. What is the amount of overhead over-absorbed or under-absorbed?
A$4000 over
B$4000 under
C$6000 over
D$6000 under
✓ Correct Answer
The correct answer is A. 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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