The factory overhead is?

Use the information below to answer question .

Prime cost………………N12 100
lighting………………..N10 000
Heating…………………N15 000
Factory overhead…………?

The production department share of factory overhead is 1/4 and 1/2 of lighting and heating respectively.

A. N5050
B. N7250
C. N2750
D. N5500

Correct Answer:

Option D – N5500