Stohr Company has two departments, New and Old. Central costs are allocated to the two departments in various ways. Relevant information is presented below:

-If total rent expense is $192,000 and it is allocated on the basis of square footage, the amount allocated to the Old Department should be
A) $57,600.
B) $160,000.
C) $144,000.
D) $48,000.

Question

Stohr Company has two departments, New and Old. Central costs are allocated to the two departments in various ways. Relevant information is presented below:
 
-If total rent expense is $192,000 and it is allocated on the basis of square footage, the amount allocated to the Old Department should be
A) $57,600. 
B) $160,000. 
C) $144,000. 
D) $48,000.

Quizplus · Accepted Answer

The Answer of Stohr Company has two departments, New and Old. Central costs are allocated to the two departments in various ways. Relevant information is presented below:
 
-If total rent expense is $192,000 and it is allocated on the basis of square footage, the amount allocated to the Old Department should be
A) $57,600. 
B) $160,000. 
C) $144,000. 
D) $48,000.

Stohr Company Has Two Departments, New and Old