Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

Budgeted overhead expenditure stood at $180000$ and budgeted labour hours came to $12000$. In reality, overheads totalled $196000$ and labour hours were $12200$. What was the under or over absorption of overheads?

  • A$3000 over
  • B$3000 under
  • C$13000 over
  • D$13000 under

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