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31 May, 06:47

MC Qu. 21 Milton Company has three departments occupying ... Milton Company has three departments occupying the following amount of floor space: Department 1 24,000 sq. ft. Department 2 11,800 sq. ft. Department 3 34,000 sq. ft. How much store rent should be allocated to Department 2 if total rent is equal to $109,000? (Do not round your intermediate calculations, round final answer to nearest whole dollar amount.) Multiple Choice $34,000

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  1. 31 May, 09:55
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    The store rent should be allocated to Department 2 is $18,430

    Explanation:

    For calculating the allocation of rent in Department 2. Following computation is required which is shown below:

    1. First we have to calculate Total floor space Square feet value which is equals to

    = Department 1 + Department 2 + Department 3

    = 24,000 + 11,800 + 34,000

    = 69,800

    Thus, the total floor space is 69,800

    Now calculate the per square rent which = total rent : total square feet

    = $109,000 : 69,800

    = 1.56 per square rent

    After that, multiply the per square rent with department 2 floor space

    = 11,800 * 1.56

    = $18,430

    Thus, the store rent should be allocated to Department 2 is $18,430
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