How much selling and distribution expenses is apportioned to department M?

How much selling and distribution expenses is apportioned to department M?

  • A.
    N 800
  • B.
    N 600
  • C.
    N400
  • D.
    N1800
Correct Answer: Option A
Explanation

Department  difference M has a turnover of 89,000. That is 29,000 higher than department L and 49,000 higher than department K, This means department M has the highest selling and distribution cost because they sold the most. Hence the 1800 would be divided amongst the three departments in the ratio of their turnover

Department K = 400 
                   L  = 600
                  M = 800
total = 1800

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