Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A company applies a direct labour rate of $5.40 per hour for absorbing production overhead. Each unit of product made needs four direct labour hours. The information below is given for one period: Actual production overhead = $518 400. Under absorbed production overhead = $32 400. What was the actual output during the period?

  • A22 500 units
  • B24 000 units
  • C25 500 units
  • D90 000 units

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