Question
A company pays $25,000 per period to rent a small building that has 11,000 square feet of space. This cost is allocated to the company's
A company pays $25,000 per period to rent a small building that has 11,000 square feet of space. This cost is allocated to the company's three departments on the basis of the amount of the space occupied by each. Department One occupies 2,200 square feet of floor space, Department Two occupies 3,300 square feet of floor space, and Department Three occupies 5,500 square feet of floor space. If the rent is allocated based on the total square footage of the space, Department One should be charged rent expense for the period of:
Multiple Choice
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$7,400.
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$5,000.
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$4,400.
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$2,420.
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$2,200.
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