Question

Department A occupies 10,000 square feet, Department B occupies 6,000 square feet, and Department C occupies 4,000 square feet. What percent of the total overhead expense should be allocated to Department B?

60 percent

40 percent

30 percent

10 percent

Answer 1

The correct answer is C. 30 percent

Explanation:

What percent of the total overhead expense should be allocated to Department B?

For answering this question, we should make the following calculations this way:

Company's footprint = Department A + Department B + Department C

Company's footprint = 10,000 + 6,000 + 4,000

Company's footprint = 20,000 square feet

Overhead expense allocated to Department B = Department B footprint/Company's footprint

Overhead expense allocated to Department B = 6,000/20,000

Overhead expense allocated to Department B = 0.3 = 30%

The correct answer is C. 30 percent