Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The details of a company’s fixed overheads were given as follows. Budgeted hours: 10 000, fixed overheads $150 000. Actual hours: 11 000, fixed overheads $170 000. What was the over or under absorption of fixed overheads?

  • A$5000 over absorbed
  • B$5000 under absorbed
  • C$15 000 over absorbed
  • D$15 000 under absorbed

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