A-LevelAccountingOverhead AbsorptionFeb/Mar 2017Paper 1 Q231 Mark
A business absorbs overheads based on machine hours. During the last quarter it had the following budgeted and actual results. Actual overheads $118505; actual machine hours 6230; budgeted overheads $126725; budgeted machine hours 6850. By how much were overheads over or under absorbed?
Aover absorbed by $3250
Bover absorbed by $8220
Cunder absorbed by $3250
Dunder absorbed by $8220
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of overhead absorption within the Accountingsyllabus. The examiner's mark scheme requires...
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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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