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A-LevelAccountingOverhead AbsorptionFeb/Mar 2017Paper 1 Q271 Mark

A company provides the following information. Budgeted overheads $136000; budgeted labour hours 10568; actual overheads $146000; actual labour hours 10110. What is the overhead absorption rate per labour hour?

A$12.87
B$13.45
C$13.82
D$14.44

✓ 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) Feb/Mar 2017 examination, Paper 1 Variant 2. It tests the topic of Overhead Absorption and is worth 1 mark.

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