Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

For one period, a business recorded the following budgeted and actual figures. Budgeted fixed overheads are $\$354\,000$, actual fixed overheads are $\$360\,000$, and under-absorption of overheads amounts to $\$3\,000$. The fixed overheads are absorbed per unit. The budgeted number of units were 118000. What is the actual level of activity in units?

  • A118000
  • B119000
  • C120000
  • D121000

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