CIMA BA2 · Chapter 3 · Question 2 of 8
Factory rent of $84,000 is apportioned on the basis of floor area. The floor areas of the cost centres are: Machining 2,400 m2, Assembly 1,800 m2, Stores 800 m2 and Canteen 1,000 m2. How much rent is apportioned to Assembly?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) $25,200
Explanation
Total floor area = 2,400 + 1,800 + 800 + 1,000 = 6,000 m2. Rent per m2 = $84,000 / 6,000 = $14. Assembly = 1,800 x $14 = $25,200.
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