Skip to main content
A-LevelAccountingAbsorption Costing and Overhead AbsorptionMay/June 2016Paper 1 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

The correct answer is D. This question tests the candidate's understanding of absorption costing and overhead absorption 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...

🔒

Unlock the Examiner's Answer

Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.

Sign Up Free to Unlock →

Join thousands of Cambridge students already using Oracle Prep

About This A-Level Accounting Question

This multiple-choice question appeared in the Cambridge A-Level Accounting (9706) May/June 2016 examination, Paper 1 Variant 2. It tests the topic of Absorption Costing and Overhead Absorption and is worth 1 mark.

Oracle Prep provides AI-powered practice for all Cambridge O-Level and A-Level subjects. Our platform includes topic predictions with 87.7% accuracy, AI essay grading, and a comprehensive question bank spanning 25 years of past papers.

© 2026 Oracle Prep — The AI-Powered Cambridge Exam Engine