Day: March 28, 2021

Accounting Multiple Choice Question – 28 March 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The following data below is relevant to a business. 

What is the amount of overhead under-absorbed?

Select ONE answer:

  1. £7,500
  2. £8,000
  3. £10,000
  4. £17,500

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct ==> (£150,000 / 10,000) = £15 * 9,500 hours ==> £142,500 – £160,000 = £17,500 ADV

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