Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The data for a business are shown below. Budgeted manufacturing overhead $234\,000$ Budgeted direct labour hours 45,000 Actual manufacturing overhead $243\,600$ Actual direct labour hours 42,000 Calculate the amount by which overhead was under- or over-absorbed.

  • A$25\,200$ over absorbed
  • B$25\,200$ under absorbed
  • C$27\,000$ over absorbed
  • D$27\,000$ under absorbed

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