A-LevelAccountingCosting / Overhead AbsorptionFeb/Mar 2024Paper 1 Q271 Mark
X Limited has budgeted monthly overheads of $125 000. Its overhead absorption rate is $5 per machine hour. In July there was an under-absorption of overheads of $1000. Which changes from budgeted data caused this to happen?
Aoverheads: $500 higher, machine hours: 100 hours less
Boverheads: $500 lower, machine hours: 100 hours more
Coverheads: $750 higher, machine hours: 50 hours more
Doverheads: $750 lower, machine hours: 50 hours less
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of costing / overhead absorption 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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