Question
Suppose square feet is used as the basis for allocating the common fixed cost of $200,000. How much would be allocated to the bar if
Suppose square feet is used as the basis for allocating the common fixed cost of $200,000. How much would be allocated to the bar if the bar occupies 1,000 square feet and the restaurant 9,000 square feet?
a. $20,000
b. $30,000
c. $40,000
d. $50,000
Answer is A but how is this computed?
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
