Question 28
Manufacturing AccountsThe floor space occupied by manufacturing and administration departments in a company is 200 sqm and 300 sqm respectively. N20 000 rent incurred is shared using floor space occupied. How much is the rent chargeable to manufacturing?
- A.N 8000
- B.N 10 000
- C.N 12 000
- D.N 18 000
Show the answer and explanation
Answer: A (N 8000)
Explanation
Manufacturing share = 200/500 × 20 000 = ₦8 000.