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Please explain! A company rents a building with a total of 130,000 square feet, which are evenly divided between two floors. The company allocates the
Please explain!
A company rents a building with a total of 130,000 square feet, which are evenly divided between two floors. The company allocates the rent for space on the first floor at twice the rate of space on the second floor. The total monthly rent for the building is $39,000. How much of the monthly rental expense should be allocated to a department that occupies 13,000 square feet on the first floor? (Do not round your intermediate calculations.) Multiple Choice $6,500. $2,600 $7,800. $3,900 $5,200 Explanation First Floor: ($39,000 x 2/3)/65,000 sq. ft.-$o.40/sq.ftStep by Step Solution
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