A-LevelAccountingTraditional costing methods9706/12 · May/June 2013 · 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?

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A$6832 over absorbed

B$6832 under absorbed

C$10880 over absorbed

D$10880 under absorbed

✓ Correct answer

B: $6832 under absorbed

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2013 Paper 1 Variant 2, question 25.

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