Questions by pblock - Page 16
: Saylind Molding paid $1,320,000 in rent for the year. The company's three departments are Headrests, Armrests, and Floor Mats. The accountant has identified two possible cost drivers. The number of employees in each department and the square footage of space occupied by each department. The number of employees working in each department includes 80 in the Headrest Department, 50 in the Armrest Department and 130 in Floor Mats Department. The departments occupy 15,000, 16,300, and 12,700 square feet, for Headrests, Armrests, and Floor Mats respectively. How much of the rent cost should be allocated to the products made in the Floor Mats department? Multiple Choice $381,000 $450,000 $489,000 $492,000