Given Dept A Dept B Floor space 40m2 60m2 Machine hours 1200 1400 Turnover N36…

Given
Dept A Dept B
Floor space 40m2 60m2
Machine hours 1200 1400
Turnover N36 million N64 million
Labour hours 1000 1400
A joint cost of N 72 million incurred by the two departments was apportioned N30 million to A and N42 million to B. the basis used for apportionment must have been
  • A.
    labour hours
  • B.
    floor space
  • C.
    turnover
  • D.
    machine hours
Correct Answer: Option A
Explanation
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