Question 33
Departmental AccountsAbingo Limited has three departments K, L and M.
(i) Rent for the year ₦3 000
(ii) Selling and distribution expenses ₦1 800
Department / Turnover / Floor space in square meters
K: ₦40 000; 120
L: ₦60 000; 80
M: ₦89 000; 100
How much rent is apportioned to department K?
- A.₦1 200
- B.₦1 800
- C.₦2 000
- D.₦750
Show the answer and explanation
Answer: A (₦1 200)
Explanation
Rent is shared by floor space: 120/300 × 3 000 = ₦1 200.