Day: July 21, 2021

A business has the following budgeted and actual results for a period. 

The fixed overheads are absorbed per unit.

What is the actual level of activity in units? 

Select ONE answer:

1. 118,000
2. 119,000
3. 120,000
4. 121,000

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 2

1. Not correct
2. Correct ==> (£354,000 / 118,000) = £3 per unit.  £360,000 – £3,000 = £357,000 / £3 = 119,000
3. Not correct
4. Not correct

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