• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

under/over absorbed overhead

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › under/over absorbed overhead

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • February 28, 2023 at 10:26 am #679774
    linda268
    Participant
    • Topics: 3
    • Replies: 1
    • ☆

    The budgeted overhead absorption rate for variable prduction overheads in department A of Lublin’s factory is $3.00 per direct labour hours and for fixed overhead is $4.50 per direct labour hour. Actual direct labour hours worked exceeded the budget by 500 hours.
    If the expenditure were as expected for variable and fixed overheads, the total over-absorbed overhead for the period would be:
    A $507.50
    B $1,500.00
    C $2,250.00
    D $3750.00
    Hi. Could u pls explain for me why when the expenditure are as budgeted but actual and budgeted production activity levels are different, only fixed overhead can be under or over absorbed ?
    thank you so much !

    February 28, 2023 at 6:28 pm #679813
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54711
    • ☆☆☆☆☆

    The question does not say that the total expenditure for variable overheads is as budgeted. It says that it is as expected, and that means that the variable overheads are as expected for the actual level of production (i.e. that the cost per hour is as expected).

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • crabtreef on PM Chapter 9 Questions Short-term decision making
  • Abdjr11 on Financial management objectives – ACCA Financial Management (FM)
  • John Moffat on FA Chapter 6 Questions Depreciation
  • Masterodad on FA Chapter 6 Questions Depreciation
  • natashad25 on MA Chapter 3 Questions Presenting Information

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in