Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A business allocates its overheads using machine hours as the basis. The information given is as follows. Overheads: actual $960000$, budgeted $900000$ Machine hours: actual $6200$, budgeted $6000$ By how much were overheads under-absorbed or over-absorbed?

  • Aover-absorbed by $30000$
  • Bunder-absorbed by $30000$
  • Cover-absorbed by $60000$
  • Dunder-absorbed by $60000$

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