Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The data given are as follows: overheads budgeted $60000$, actual $66000$; direct labour budgeted $30000$ hours, actual $35000$ hours. The overhead absorption rate is calculated using direct labour hours. What amount of overhead is over-absorbed or under-absorbed?

  • A$4000$ over
  • B$4000$ under
  • C$6000$ over
  • D$6000$ under

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI