A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2015 · Q281 Mark

A business provides the following information. | month | number of machine hours | total overheads $ | |---|---|---| | August | 72000 | 842000 | | September | 84000 | 938000 | The variable overhead rate per machine hour was $8. What was the monthly fixed cost?

A$96 000

B$266 000

C$576 000

D$672 000

✓ Correct answer

B: $266 000

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2015 Paper 1 Variant 2, question 28.

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