A-LevelAccountingCosting / Overhead AbsorptionMay/June 2020Paper 1 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
The correct answer is D. This question tests the candidate's understanding of 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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