Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A business applies its overheads using direct labour hours as the absorption basis. The information given is: - Overheads: actual $560000, budgeted $546000 - Direct labour hours: actual 19300, budgeted 18200 What is the amount of under- or over-absorption of overheads?

  • Aover absorbed by $14000
  • Bunder absorbed by $14000
  • Cover absorbed by $19000
  • Dunder absorbed by $19000

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