CIMA Fundamentals of management accounting BA2 Question # 9 Topic 1 Discussion

CIMA Fundamentals of management accounting BA2 Question # 9 Topic 1 Discussion

BA2 Exam Topic 1 Question 9 Discussion:
Question #: 9
Topic #: 1

A company operates an absorption costing system. Overheads are absorbed using a pre-determined absorption rate using labour hours. In the period actual labour hours were 10,600, 400 hours below budget. Actual overheads for the period were £234,680 and there was an under-absorption of overheads of £1,480.

What was the budgeted level of overheads?


A.

£242,000


B.

£233,200


C.

£245,072


D.

£224,720


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