ACCA MA · Chapter 6 · Question 3 of 11
Factory rent of $60,000 is apportioned by floor area. The floor areas are: Machining 4,000 square metres, Assembly 3,500 square metres and Stores 2,500 square metres. How much rent is apportioned to Machining?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) $24,000
Explanation
Total floor area = 4,000 + 3,500 + 2,500 = 10,000 square metres. Machining share = 60,000 x 4,000 / 10,000 = $24,000. $20,000 would be an equal split, $21,000 is Assembly's share and $15,000 is Stores' share.
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