Accounting Multiple Choice Question – 18 July 2021

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

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Production overhead expenditure in a period totalled £102,660 compared with a budget of £105,270.

Direct labour hours are used to absorb production overheads.

8,700 direct labour hours were worked in the period and production overhead was over-absorbed by £1,740.

What was the production overhead absorption rate per direct labour hour?

Select ONE answer:

  1. £11.60
  2. £11.80
  3. £12.00
  4. £12.10 

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 3

  1. Not correct
  2. Not correct
  3. Correct 
  4. Not correct

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