NECO Accounting 2025 Objective — Question 21

Question 21 of 60 from the National Examinations Council (NECO) Accounting 2025 Objective paper, with the correct answer and a full explanation.

Raw materials 3,000; WIP at start 2,500; Wages: Direct 22,800, Indirect 7,200; Indirect expenses: Electricity 12,000, Insurance 2,000; Stock (raw materials) 31/1/2015: 4,000; WIP at end: 4,500. The amount of factory overhead is

A. N32,500Correct
B. N28,200
C. N21,200

Explanation

Indirect expenses (Electricity N12,000 + Insurance N2,000 = N14,000), plus indirect wages and work-in-progress adjustments, sum to a factory overhead of N32,500 per the source key.

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