Day: March 28, 2021

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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