Apportion insurance using net book value Steps:

• Calculate total net book value: assembly $15,000 + painting$10,000 = $25,000.
• Determine assembly proportion: $15,000 /$25,000 = 0.6.
• Apportion total insurance: 0.6 × $5,000 =$3,000 to assembly. Why A is correct:
• Insurance is apportioned based on net book value, as it reflects asset risk and coverage needs per standard cost accounting practice. Why the others are wrong:
• B uses machine numbers (60/90 × $5,000 =$3,333, rounded to $3,500), ignoring value basis.
• C uses operating hours (30/45 × $5,000 =$3,333, rounded to $3,750), not relevant for insurance.
• D uses repair costs (equal split, $2,500 each), which doesn't match value proportion.

Final answer: A