Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The information for a company’s fixed overhead in one period was: budgeted direct labour hours $5000$ actual direct labour hours $5500$ The total budgeted fixed overhead amounted to $50000$. Overheads over-absorbed during the period were $4000$. What was the actual fixed overhead incurred in the period?

  • A$51000
  • B$54000
  • C$55000
  • D$59000

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