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3.2 Management accounting
Quick questions on Absorption and activity based costing: overhead absorption rates and cost drivers - AQA A-Level Accounting
2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is q1?Show answer
Budgeted overheads are and budgeted labour hours are . Calculate the overhead absorption rate per labour hour. [2 marks] per labour hour.
What is q2?Show answer
State what a cost driver is in activity based costing. [1 mark] The factor that causes the cost of an activity (a cost pool) to change, such as the number of set-ups or orders.
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