A-LevelAccountingCosting / Overhead AbsorptionMay/June 2020Paper 1 Q211 Mark

A business provided the following information. [Table with 'budgeted overheads' $20000, 'budgeted direct labour hours' 2000, 'direct labour rate' $20 per hour] A job used materials costing $45 and 6 hours of direct labour. Overheads are charged on the basis of direct labour hours used. What was the cost of the job before adding any profit?

Q: What topic does this question test?

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

A$105

B$165

C$180

D$225

✓ Correct Answer

The correct answer is D: $225

📋 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 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 2020 examination, Paper 1 Variant 2.

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