Accounting Multiple Choice Question – 14 September 2023

The table shows budgets for the next production period for Alex Ltd:

• direct materials: output 2,000 units = £30,000 AND output 4,000 units = £60,000
• direct labour: output 2,000 units = £48,000 AND output 4,000 units = £96,000
• production overhead: output 2,000 units = £76,000 AND output 4,000 units = £92,000

What would be the budgeted production cost of 3,000 units?

Select ONE answer:

1. £141,000
2. £147,000
3. £171,000
4. £201,000

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct = DM £45,000 + DL £72,000 + PO (76+92 / 2)

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