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A-LevelAccountingOverhead AbsorptionMay/June 2018Paper 1 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

The correct answer is A. 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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About This A-Level Accounting Question

This multiple-choice question appeared in the Cambridge A-Level Accounting (9706) May/June 2018 examination, Paper 1 Variant 2. It tests the topic of Overhead Absorption and is worth 1 mark.

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