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?

Q: What topic does this question test?

This question tests Costing / Overhead Absorption in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

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: overheads: $500 higher, machine hours: 100 hours less

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Costing / Overhead Absorption in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2024 examination, Paper 1 Variant 2.

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