Waec Model Questions Vol1 2018 Financial Accounting Question 42

Practice objective / multiple choice question 42 from the 2018 Waec Model Questions Vol1 Financial Accounting examination.

Waec Model Questions Vol1 2018 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 42 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • FINANCIAL_ACCOUNTING • objective

A manufacturing firm produces two products, A and B. The data for the year are: Direct materials used - A: ₦120,000; B: ₦80,000. Direct labour is paid at ₦15 per hour; hours worked - A: 2,000 h; B: 1,500 h. Machine hours - A: 3,000 h; B: 2,000 h. Factory overhead consists of rent ₦50,000, utilities ₦30,000 and depreciation ₦20,000, which are allocated to products on the basis of machine hours. An additional fixed overhead of ₦10,000 is not allocated and is to be distributed to the products in proportion to their machine‑hour usage. If 5,000 units of product B were produced, determine (a) the total production cost of product B and (b) the unit cost of product B.

Answer Options

A. Total cost = 152,000; Unit cost = 30.40
Correct Answer B. Total cost = 146,500; Unit cost = 29.30
C. Total cost = 150,500; Unit cost = 30.10
D. Total cost = 138,500; Unit cost = 27.70
Correct Answer
B
Correct Option:
Total cost = 146,500; Unit cost = 29.30

About This Question

This is Waec Model Questions Vol1 2018 Financial Accounting Question 42. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

View More Waec Model Questions Vol1 2018 Financial Accounting Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support