Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The figures below relate to a business: - budgeted direct labour hours: $20\,000$ - budgeted overheads: $300\,000$ - actual direct labour hours: $19\,000$ - under-absorption of overheads: $35\,000$ What amount of actual overheads was incurred during the period?

  • A$250\,000$
  • B$265\,000$
  • C$320\,000$
  • D$335\,000$

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