A-LevelAccountingTraditional costing methods9706/12 · May/June 2020 · Q241 Mark

The following data were available for a department for July. [Table with 'budget' and 'actual' for 'direct labour hours' (40000, 41950), 'machine hours' (60000, 60900), 'overheads' ($480000, $499200)] What was the over or under absorption of overheads for July?

A$4200 over absorbed

B$4200 under absorbed

C$12000 over absorbed

D$12000 under absorbed

✓ Correct answer

D: $12000 under absorbed

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2020 Paper 1 Variant 2, question 24.

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