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Answer the Following Questions Using the Information Below:
Fremantle Corporation

Question 190

Multiple Choice

Answer the following questions using the information below:
Fremantle Corporation has two departments,Sails and Masts.Central costs could be allocated to the two departments in various ways.
 Sails Department  Masts Department  Square metreage 600018000 Number of employees 1120480 Sales $400000$2000000\begin{array} { l r r } & \text { Sails Department } & \text { Masts Department } \\\text { Square metreage } & 6000 & 18000 \\\text { Number of employees } & 1120 & 480 \\\text { Sales } & \$ 400000 & \$ 2000000\end{array}
-If a total rent expense of $120 000 is allocated on the basis of square metreage,the amount allocated to the Sails Department would be:


A) $84 000
B) $30 000
C) $90 000
D) $20 000

Correct Answer:

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