Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A business gives the following figures: budgeted overhead costs $280\,000$, budgeted labour hours $25\,000$, budgeted machine hours $20\,000$, actual overhead cost $336\,000$, actual labour hours $35\,000$, and actual machine hours $30\,000$. What is the over-absorption or under-absorption of overheads?

  • A$56\,000$ over absorbed
  • B$56\,000$ under absorbed
  • C$84\,000$ over absorbed
  • D$84\,000$ under absorbed

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI