Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

For July, the following figures were available for a department. direct labour hours: budget $40\,000$, actual $41\,950$ machine hours: budget $60\,000$, actual $60\,900$ overheads: budget $480\,000$, actual $499\,200$ What amount of overheads was over or under absorbed for July?

  • A$4200$ over absorbed
  • B$4200$ under absorbed
  • C$12\,000$ over absorbed
  • D$12\,000$ under absorbed

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