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Naddika [18.5K]
4 years ago
11

Blanton Company wishes to allocate rent expense of $24,000 to its three operating departments, A, B, and C. Assuming the three d

epartments occupy 10,000, 20,000 and 30,000 square feet respectively, the cost allocation rate for Department C is $0.80 per square foot.
True or False?
Business
1 answer:
wariber [46]4 years ago
5 0

Answer:

given statement is false

Explanation:

given data

rent expense = $24,000

operating departments, A = 10,000 square feet

operating departments, B =  20,000 square feet

operating departments, C =  30,000 square feet

cost allocation rate = $0.80 per square foot

solution

rent expense will be here as

rent expense = \frac{24000}{60000}

rent expense = $0.40 per square foot

and

rent expense allocated to department C is = 30000 × $0.40

rent expense allocated to department C = $12000

so given statement is false

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