Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A business works out its overhead absorption rates using direct labour hours. For October, the details below are provided. What was the under or over absorption of overheads in October?

  • A$3000 over
  • B$3000 under
  • C$3800 over
  • D$3800 under

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