A-LevelAccountingBudgeting and Budgetary ControlFeb/Mar 2016Paper 1 Q291 Mark

A business has the following budgeted and actual results for a period. $ budgeted fixed overheads 354 000 actual fixed overheads 360 000 under-absorption of overheads 3000 The fixed overheads are absorbed per unit. The budgeted number of units were 118000. What is the actual level of activity in units?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is B: 119000.

Q: What topic does this question test?

This question tests Budgeting and Budgetary Control in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A118000

B119000

C120000

D121000

✓ Correct Answer

The correct answer is B: 119000

📋 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 Budgeting and Budgetary Control in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2016 examination, Paper 1 Variant 2.

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