Day: November 18, 2017

Accounting Multiple Choice Question – 18 November 2017

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

A business operates a system of absorption costing. The business apportions factory administration overheads to the four departments: Cutting; Welding; Finishing and Stores based on the number of employees in each department.

Table 15

The factory administration overheads are forecast to be £175 770.

How much of the factory administration overheads will be apportioned to the Finishing department?

Select ONE answer:

  1. £12,555
  2. £37,655
  3. £43,942
  4. £58,590
  5. £65,940

Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 2 – the total number of employees in the business are 70 (25+20+15+10). Finishing makes up 15/70 or 21.43% which multiplied into the administration overhead of £175,770 equals £37,665.

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