Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The following details are given for a business. Budgeted fixed overheads $180000$ for $10000$ hours. Actual fixed overheads $190000$ for $11000$ hours. What was the over-absorption or under-absorption of fixed overheads?

  • A$8000 over
  • B$8000 under
  • C$10000 over
  • D$10000 under

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