Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

For one month, a business recorded these budgeted and actual figures: budgeted fixed overheads $354 000; actual fixed overheads $360 000; under-absorption of overheads $3 000. Fixed overheads are absorbed on a per-unit basis. The budgeted number of units is 118 000. Calculate the actual activity level, measured in units?

  • A118 000
  • B119 000
  • C120 000
  • D121 000

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