Day: October 20, 2023

Accounting Multiple Choice Question – 20 October 2023

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

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The following financial data applies to Alex Trading Ltd.

  • budgeted labour hours – 10,000 hours
  • actual labour hours – 9,500 hours
  • budgeted overheads – £150,000
  • actual overheads – £160,000

What is the amount of overhead under-absorbed?

Select ONE answer:

  1. £7,500
  2. £8,000
  3. £10,000
  4. £17,500

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 – £150,000 / 10,000 = £15 * 500 = £7,500 + £10,000 extra overhead

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