A-LevelAccountingTraditional costing methods9706/12 · May/June 2016 · Q251 Mark

Budgeted overhead expenditure was $180000 and budgeted labour hours were 12000. Actual overheads amounted to $196000 and actual labour hours were 12200. What was the under or over absorption of overheads?

A$3000 over

B$3000 under

C$13000 over

D$13000 under

✓ Correct answer

D: $13000 under

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 2016 Paper 1 Variant 2, question 25.

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

Samuel manufactures a single product. Total cost per unit is $70 when production is 100 units per week, and $62.50 wh…

A business absorbs overheads based on machine hours. During the last quarter it had the following budgeted and actua…

Actual output exceeds budgeted output. Which cost is higher than budgeted?

Which statements describe a capital reserve? 1 It is a reserve arising from a gain which is not yet realised. 2 It is…

The following is an extract from a statement of changes in equity. ordinary share general retained share capital prem…

The following has been extracted from the financial statements of a business. $ revenue 135000 total capital employed…