Accounting Multiple Choice Question – 7 April 2023

The following budgeted information is available for Alex Ltd.

• selling price per unit £200
• total costs per unit £150
• budgeted sales for the period 2,500 units

Variable costs are 60% of total costs.

What are the budgeted fixed overheads for the period?

Select ONE answer:

1. £125,000
2. £150,000
3. £225,000
4. £375,000

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 – £150 * .4 = £60 * 2,500 units = £150,000
3. Not correct
4. Not correct

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