Question 21
Departmental AccountsNagode (Nig.) Ltd. has three departments A, B and C. You are given the following information:
(i) Rent for the year: ₦3,000
(ii) Selling and distribution expenses: ₦1,800
(iii) Department | Turnover | Floor space in square metres
A | ₦40,000 | 120
B | ₦60,000 | 80
C | ₦80,000 | 100
How much rent is apportioned to department C?
- A.₦2,000
- B.₦1,800
- C.₦1,200
- D.₦1,000
- E.₦800
Show the answer and explanation
Answer: D (₦1,000)
Explanation
100/300 × 3,000 = ₦1,000.