A-LevelAccountingOverhead AbsorptionMay/June 2019Paper 1 Q221 Mark
A business has two production departments: assembly and machinery. The following budgeted information is available. | | assembly | machinery | |:---|:---|:---| | labour hours | 5600 | 1350 | | machine hours | 1200 | 6900 | | overheads | $75000 | $80 000 | What is the overhead absorption rate for the assembly department?
A$13.39 per labour hour
B$19.14 per machine hour
C$22.30 per labour hour
D$62.50 per machine hour
✓ 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...
📋 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...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep