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JAMB Principles of Accounts 2000 Question 47

Question 47

Departmental Accounts

Given:
(Dept. A; Dept. B)
Floor space 40m²; 60m²
Machine hours 1200; 1400
Turnover ₦36 million; ₦64 million
Labour hours 1000; 1400
A joint cost of ₦72 million incurred by the two departments was apportioned ₦30 million to A and ₦42 million to B. The basis used for apportionment must have been

  1. A.labour hours
  2. B.floor space
  3. C.turnover
  4. D.machine hours.
Show the answer and explanation

Answer: A (labour hours)

Explanation

30 : 42 = 5 : 7, which matches labour hours 1,000 : 1,400 = 5 : 7.