passwella.
Menu

JAMB Principles of Accounts 2006 Question 35

Question 35

Manufacturing Accounts

Prime cost ₦12 100
Lighting ₦10 000
Heating ₦15 000
Factory overhead ₦?
The production department share of factory overhead is ¼ and ⅕ of lighting and heating respectively.
The factory overhead is

  1. A.₦5 050
  2. B.₦7 250
  3. C.₦2 750
  4. D.₦5 500.
Show the answer and explanation

Answer: D (₦5 500.)

Explanation

¼ × 10 000 + ⅕ × 15 000 = 2 500 + 3 000 = ₦5 500.