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

  • A N 800
  • B N 600
  • C N400
  • D N1800
jamb 2010accounting

The correct answer is A. N 800

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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