Accounting Multiple Choice Question – 5 February 2022

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

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A manufacturing business has provided the following information.

  • budgeted labour hours 12 000
  • budgeted overhead absorption rate £7.50 per labour hour
  • actual overhead cost £101 250
  • actual labour hours 15 000

What is the over or under absorption of overheads?

Select ONE answer:

  1. £11 250 under absorbed
  2. £11 250 over absorbed
  3. £20 250 under absorbed
  4. £20 250 over absorbed

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
  3. Not correct
  4. Not correct

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