Question

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

Answer 1

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

Step-by-step 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