How much rent is allocable to the assembly department using the direct method of allocation?
A)$420,000
B)$332,500
C)$300,000
D)$252,000

Question

Quizplus · Accepted Answer

The direct method of allocation allocates rent based on the square footage occupied by each department. The assembly department occupies 1,050 square feet, which is 35% of the total square footage. Therefore, the assembly department is allocated 35% of the total rent, which is $420,000.

How Much Rent Is Allocable to the Assembly Department Using