A-LevelAccountingTraditional costing methods9706/12 · May/June 2023 · Q251 Mark

A business absorbs its overheads on the basis of direct labour hours. The following information is provided for its last period. actual budgeted overheads $640 000 $620 000 labour hours 13 100 12400 By how much were overheads over-absorbed or under-absorbed?

Aover-absorbed by $15000

Bunder-absorbed by $15000

Cover-absorbed by $20000

Dunder-absorbed by $20000

✓ Correct answer

A: over-absorbed by $15000

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2023 Paper 1 Variant 2, question 25.

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