A company incurred ₦21 000 in running its four departments, namely J,K,L and M with a corresponding number of employees as 1500, 2000, 3000 and 500 respecti...

Assessment: JAMB UTME - Principles of Accounts - 2005 Subject: Financial Accounting

Question 1 Report

A company incurred ₦21 000 in running its four departments, namely J,K,L and M with a corresponding number of employees as 1500, 2000, 3000 and 500 respectively. What is the share of department K?
Answer Details
To find the share of department K, we need to calculate the ratio of the number of employees in department K to the total number of employees in all departments, and then multiply that ratio by the total cost incurred by the company. The total number of employees in all departments is: 1500 + 2000 + 3000 + 500 = 7000 The ratio of the number of employees in department K to the total number of employees in all departments is: 2000/7000 = 2/7 Therefore, the share of department K is: (2/7) x ₦21,000 = ₦6,000 So the answer is ₦6,000.

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