Question

If total rent expense of $180,000 is allocated on the basis of square footage, the amount allocated to the Small Department would be ________.

Answer 1

Answer: $50625

Explanation:

Based in the information above, the amount that's allocated to the Small Department will be:

Square footage of small department = 6750

Total square footage = 6759 + 17250 = 24000

Luzent rent expense allocated to small department will be:

= 6750/24000 × $180000

= $50625