A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2016 · 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

A: $4000 over

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2016 Paper 1 Variant 2, question 24.

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