A-LevelAccountingTraditional costing methods9706/12 · May/June 2017 · Q271 Mark

The following details are supplied by a company for the month of August. budgeted machine hours 36000 budgeted overheads $162000 actual machine hours 36 500 actual overheads $155000 What is the under or over absorption of the overheads?

A$2250 over absorbed

B$2250 under absorbed

C$9250 over absorbed

D$9250 under absorbed

✓ Correct answer

C: $9250 over absorbed

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2017 Paper 1 Variant 2, question 27.

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