A-LevelAccountingTraditional costing methods9706/12 · May/June 2015 · Q241 Mark

The following figures are given for a factory's overheads and machine hours worked. machine hours total overhead costs overhead absorption rate budgeted 122000 $268400 $2.20 actual 116000 $261000 $2.25 What was the under or over absorption of overhead for the quarter?

A$5800 over absorbed

B$5800 under absorbed

C$7400 over absorbed

D$7400 under absorbed

✓ Correct answer

B: $5800 under absorbed

Oracle Prep sorts past-paper questions by topic, so you can drill Traditional costing methods and see which topics are most likely to come up next.

Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2015 Paper 1 Variant 2, question 24.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content