Accounting Multiple Choice Question – 30 June 2023

The table shows figures for a week’s production of The Milford.

• expected production – 10,000 units
• expected production overhead – £50,000
• actual production overhead – £60,000
• under-absorption of overhead – £5,000

What is the actual amount of production in the week of The Milford?

Select ONE answer:

1. 9,000 units
2. 9,167 units
3. 11,000 units
4. 13,000 units

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 – £50,000 / 10,000 = £5 per unit = = > Actual production overhead £60,000 means a difference of £10,000 but and under-absorption of £5,000. Therefore £5,000 difference / £5 = 1,000 extra units of actual production.
4. Not correct

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