Accounting Multiple Choice Question – 5 November 2023

The table contains information provided by a company.

• budgeted direct labour hours – 8,000
• actual direct labour hours worked – 7,500
• budgeted overhead expenditure – £104,000
• actual overhead expenditure – £112,500

What is the amount of the overhead over / under recovery?

Select ONE answer:

1. £7,500 under-recovered
2. £8,500 over-recovered
3. £8,500 under-recovered
4. £15,000 under-recovered

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 – £112,500 – £104,00 + ((£104,000 / 8,000) * (8,000 – 7,500))

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