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Kia Corporation has two departments, A and B. Central costs could be allocated to the...

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Accounting

Kia Corporation has two departments, A and B. Central costs could be allocated to the two departments in various ways. Square footage of department A and B 6,000 and 18,000 square feet respectively, Number of employees of department A and B 1,120 and 480 respectively, and sales of department A and B $400,000 and $2,000,000 respectively. If total rent expense of $288,000 is allocated on the basis of square footage, the amount allocated to Department A would be:

a.

$216,000

b.

$72,000

c.

$240,000

d.

$86,400

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