Question Tag: Distribution Costs

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MI – Nov 2022 – L1 – SA – Q10 – Costing Methods

Calculation of appropriate unit cost for a distribution division

Calculate the most appropriate unit cost for a distribution division of a multinational company using the following information:

  • Kilometres travelled: 636,500
  • Tonnes carried: 2,479
  • Number of drivers: 20
  • Hours worked by drivers: 35,520
  • Tonnes-kilometres carried: 375,200
  • Cost incurred: ₦562,800

A. ₦88
B. ₦15.84
C. ₦1.50
D. ₦28,140
E. ₦227

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MI – Nov 2022 – L1 – SA – Q10 – Costing Methods

Calculation of appropriate unit cost for a distribution division

Calculate the most appropriate unit cost for a distribution division of a multinational company using the following information:

  • Kilometres travelled: 636,500
  • Tonnes carried: 2,479
  • Number of drivers: 20
  • Hours worked by drivers: 35,520
  • Tonnes-kilometres carried: 375,200
  • Cost incurred: ₦562,800

A. ₦88
B. ₦15.84
C. ₦1.50
D. ₦28,140
E. ₦227

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