Luzent Corporation has two departments. Small and Large. Central costs could be allocated to the two departments in various ways.

If total rent expense of $47,700 is allocated on the basis of square footage, the amount allocated to the Department would be:

a. $34.600

b. $23,850

c. $18,060

d. $13,100

Transcribed Image Text:

Square footage Number of employees Sales Small Department 6550 1010 $300,000 Large Department 17,300 440 $1,720,000 Square footage Number of employees Sales Small Department 6550 1010 $300,000 Large Department 17,300 440 $1,720,000

Answer rating: 100% (QA)

Option d is Correct ans... View the full answer