Sunday, 17 April 2022

An outside company provides security services for a department store for $1,200 per month. Management allocates this cost across the store’s four departments based on the square feet each department occupies.

 An outside company provides security services for a department store for $1,200 per month. Management allocates this cost across the store’s four departments based on the square feet each department occupies. Using the information below, what is the cost allocated to the Men’s department?
 

Department    Department Square Feet
Men’s    800
Women’s    1,000
Children’s    600

multiple choice
$400 Correct
$500
$300
$533

Explanation

The total square footage is 2,400 (800 + 1,000 + 600). The Men’s department percentage is 800/2,400 = 33%. $1,200 × 0.33 = $400.

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