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?
A$0.40
B$0.70
C$0.85
D$1.15
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of unit costing / overhead absorption within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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