Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The table shows data supplied by a company. budgeted direct labour hours: $8000$ actual direct labour hours worked: $7500$ budgeted overhead expenditure: $104\,000$ actual overhead expenditure: $112\,500$ Calculate the over or under recovery of overheads?

  • A$8500$ over recovered
  • B$8500$ under recovered
  • C$15\,000$ over recovered
  • D$15\,000$ under recovered

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