A-LevelAccountingUnit Costing / Overhead AbsorptionMay/June 2018Paper 1 Q291 Mark

The direct material cost of 20000 units is $8000. 400 direct labour hours are required at a cost of $6000. Overheads are absorbed at 150% of the cost of direct labour. What is the cost per unit?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is D: $1.15.

Q: What topic does this question test?

This question tests Unit Costing / Overhead Absorption in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$0.40

B$0.70

C$0.85

D$1.15

✓ Correct Answer

The correct answer is D: $1.15

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Unit Costing / Overhead Absorption in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting May/June 2018 examination, Paper 1 Variant 2.

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