A-LevelAccountingTraditional costing methods9706/12 · May/June 2011 · Q251 Mark

A business provides the following information for a month. actual direct labour hours worked 8000 actual overhead expenditure $88 000 budgeted direct labour hours 7500 budgeted overhead expenditure $90 000 What is the amount of the overhead over/under recovery?

A$2000 over-recovered

B$2000 under-recovered

C$8000 over-recovered

D$8000 under-recovered

✓ Correct answer

C: $8000 over-recovered

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2011 Paper 1 Variant 2, question 25.

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