CMA Intermediate · Cost Accounting · Overheads
Canteen expenses of ₹72,000 are to be apportioned to three departments on the basis of the number of workers employed. Dept X has 50 workers, Dept Y has 30 workers and Dept Z has 20 workers. How much is apportioned to Dept Y?
Canteen cost is spread at ₹720 per worker (₹72,000 over 100 workers). Dept Y has 30 workers, so it is charged ₹21,600. An equal split would be incorrect because the basis is number of workers.
- A₹21,600Correct
- B₹24,000
- C₹36,000
- D₹14,400
Explanation
Total workers are 100, so the rate is 72,000/100 = ₹720 per worker. Dept Y gets 30 × 720 = ₹21,600. An equal three-way split would give ₹24,000, which ignores the number of workers.
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