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C. PROBLEMS (35 pts) 1. Rent Expense on the Factory Building of $300,000 is allocated to three departments. The number of square feet equals 150,000
C. PROBLEMS (35 pts) 1. Rent Expense on the Factory Building of $300,000 is allocated to three departments. The number of square feet equals 150,000 square feet. The number cubic feet equals 25,000 cubic feet. Information for the three departments housed in the factory building are as follows: Department Square Feet Cubic Feet 45 Department A 45,000 9 o vos 45,000 45,000 54 Department B 15,000 196 Department C 90,000 100 OUD ooo 15,000 30 Layo (Yoov 80,000 960. ovo a. Required: If the cost-allocation base for this expense is square feet, how much Rent Expense is allocated to the three departments? (2 pts) b. If the cost-allocation base for this expense is cubic feet, how much Rent Expense is allocated to the three departments? (2 pts)
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