Question 6
- A manufacturing company requires 3 hours of direct labour to process every ₦87.00 worth of raw materials. If the company uses ₦30,450.00 worth of raw materials, what amount should it budget for direct labour at ₦18.25 per hour?
- An investor invested ₦x in bank M at the rate of 6% simple interest per annum and ₦y in bank N at the rate of 8% simple interest per annum. If a total of ₦8,000,000.00 was invested in the two banks and the investor received a total of ₦2,320,000.00 as interest from the two banks after 4 years, calculate the:
- values of x and y;
Observation
The Chief Examiner reported that majority of the Candidates’ ignored this question and the few that attempted it got it all wrong. In part (a) the Candidates’ were expected to get the quantity of raw materials used as 
and hence cost of direct labour per hour is 18.25
. Therefore, total amount for 3 hours is 3 
18.25 = ₦19,162.50.
In part (b)(i) the Candidates’ were expected to have
x + y = 8,000,000 …………………………………………….…(1)
and Simple Interest for Bank M at 6% for 4 years = 0.24x while for Bank N at 8% for 4 years = 0.32x so that
0.24x + 0.32y = 2,320,000……………………………………..…(2)
Solving equations (1) and (2) simultaneously to have x = ₦3,000,000.00 and y = ₦5,000,000.00.
Finally, for part 9b)(ii) simple interest paid by Bank N = 0.32 
5,000,000 = ₦1, 600,000.00