A-LevelAccountingTraditional costing methods9706/12 · May/June 2018 · Q251 Mark

The following budgeted information is available for a hotel for the next financial year. fixed overheads $192000 direct costs $240000 number of guests 2400 average guest stay 4 nights What is the overhead absorption rate per guest night?

A$20

B$45

C$80

D$180

✓ Correct answer

A: $20

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2018 Paper 1 Variant 2, question 25.

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