A-LevelAccountingCost and Management Accounting (Absorption Costing)May/June 2013Paper 1 Q251 Mark
The following data is available for the production department of a manufacturing company. Overheads are absorbed on a direct labour hour basis. [Table: month, number of machine hours, total overhead costs for budgeted and actual] What is the over or under absorption of overheads for the period?
A$6832 over absorbed
B$6832 under absorbed
C$10880 over absorbed
D$10880 under absorbed
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of cost and management accounting (absorption costing) within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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