High Traffic Products Corporation has two departments,Small and Large.Central costs could be allocated to the two departments in various ways.

If total rent expense of $71,550 is allocated on the basis of square footage,the amount allocated to the Small Department would be ________.(Do not round interim calculations.Round the final answer to the nearest whole dollar. )
A)$51,900
B)$19,650
C)$35,775
D)$27,090

Question

High Traffic Products Corporation has two departments,Small and Large.Central costs could be allocated to the two departments in various ways.

If total rent expense of $71,550 is allocated on the basis of square footage,the amount allocated to the Small Department would be ________.(Do not round interim calculations.Round the final answer to the nearest whole dollar. )
A)$51,900 
B)$19,650 
C)$35,775 
D)$27,090

Quizplus · Accepted Answer

Amount allocated to the Small Department
= $71,550 × (6,550 ÷ (6,550 + 17,300))= $19,650

High Traffic Products Corporation Has Two Departments,Small and Large