A-LevelAccountingTraditional costing methods9706/12 · May/June 2025 · Q251 Mark

P Limited uses an overhead absorption rate of $15 per machine hour, based on budgeted machine hours of 8000 per month. In July, production required 8500 machine hours, and the under-absorption of overheads amounted to $16500. What were the actual overheads in July?

A$103 500

B$111000

C$136 500

D$144 000

✓ Correct answer

D: $144 000

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2025 Paper 1 Variant 2, question 25.

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