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Departmental Unit a Had Collected $250,000 of Rent in the Third

Question 44

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Departmental Unit A had collected $250,000 of rent in the third quarter whereas Departmental Unit B had collected $750,000 in the same period. The accounting office supports both offices but spent more time collecting receivables for Unit B. The company chose to use rent collections as its basis for allocating the $152,000 in salary and benefits of the accounting department to each Unit. Departmental Unit B will have to----------- absorb of cost related to accounting services for the third quarter.

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