Rent Expense on the Factory Building of $100,000 is allocated to three departments. The cost-allocation...

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Accounting

Rent Expense on the Factory Building of $100,000 is allocated to three departments. The cost-allocation base for this expense is number of square feet, which equals 50,000 square feet. Information for the three departments housed in the factory building are as follows:

Department Square Feet Cubic Feet

Department A 15,000 15,000

Department B 5,000 5,000

Department C 30,000 20,000

How much Rent Expense is allocated to the three departments?

Department A Department B Department C

A) $15,000 $5,000 $30,000

B) $37,500 $12,500 $50,000

C) $30,000 $10,000 $60,000

D) none of the above

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