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 $144,300 is allocated on the basis of square footage,the amount allocated to the Large Department would be ________.(Do not round interim calculations.Round the final answer to the nearest whole dollar. )
A)$103,000
B)$41,100
C)$72,150
D)$103,200

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 $144,300 is allocated on the basis of square footage,the amount allocated to the Large Department would be ________.(Do not round interim calculations.Round the final answer to the nearest whole dollar. )
A)$103,000 
B)$41,100 
C)$72,150 
D)$103,200

Quizplus · Accepted Answer

Amount allocated to the Large Department
= 144,300 × (17,200 ÷ (6,850 + 17,200))= $103,200

High Traffic Products Corporation Has Two Departments,Small and Large