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