Accounts - Principles of Accounts Past Questions and Answers

Nasara Manufacturing Plc has three direct labour employees that work 40 hours each a week for 50 weeks a year. Factory overhead costs of N60,000 is distributed on the basis of direct labour hours.
Compute the overhead rate?

A N12 per hour
B N16 per hour
C N10 per hour
D N15 per hour

Question 22:

Given that 1/3 of the N6000 stock held by a branch is purchased from outsiders. If goods are invoiced to branch at 25% on cost, the provision for unrealized profit is?

A N1000.00
B N333.33
C N666.66
D N800.00

Question 23:

Costs that vary in proportion to the level of production in a manufacturing environment are known as?

A Control costs
B Overheads
C Direct costs
D Indirect costs

Question 24:

A company operating a chain of retail provision stores invoices goods to the branches at cost plus a mark-up of 25%. What is the mark-up percentage on selling price?

A 35%
B 30%
C 20%
D 15%

Question 25:

Given:
Cash purchases ..............................N25000
Trading creditors............................N45000
Opening balance of trade creditors...........N35000
Calculate the purchases for the period?

A N80,000
B N35,000
C N105,000
D N70,000