A company pays $5,000 each month for rent. Management has decided to allocate the cost based on

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A company pays $5,000 each month for rent. Management has decided to allocate the cost based on square feet occupied. Based on the following information, how much rent should be allocated to the paint department?
Lumber Dept. .............................4,000 sq. ft.
Paint Dept. .................................2,000 sq. ft.
Gardening Dept. ..........................6,000 sq. ft.
a. $250
b. $1,595
c. $2,121
d. $833
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Management Accounting Information for Decision-Making and Strategy Execution

ISBN: 978-0137024971

6th Edition

Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young

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