Accounting Multiple Choice Question – 13 September 2023

The table contains information provided by Alex Ltd.

• actual direct labour hours worked – 7,500 hours
• budgeted direct labour hours – 8,000 hours
• budgeted overhead expenditure – £104,000
• overheads under-recovered – £15,000

What is the amount of the actual overhead expenditure?

Select ONE answer:

1. £89,000
2. £97,500
3. £112,500
4. £119,000

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 3

1. Not correct
2. Not correct
3. Correct – £104,000 / 8,000 hours = £13 * 7,500 hours = £97,500 + £15,000
4. Not correct

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