Question: Fallon Enterprises uses a 5 , 0 0 0 - square - foot factory that it rents for $ 2 , 5 0 0 per

Fallon Enterprises uses a 5,000-square-foot factory that it rents for $2,500 per month. The company uses Activity Based Costing and has the following activities that require space (square footage):
ActivitySquare Ft.Preparation and setup1,000Machining2,500Finishing500Quality control1,000
When assigning indirect costs to each activity, how much factory rent should be assigned to preparation-and-setup?

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