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How much monthly rent cost should dail allocate

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Reference no: EM132633164

Dail and Associates has three departments: advertising, sales, and information systems. The departments occupy a 2,000 square feet, 1,000 square feet, and 1,000 square feet of office space, respectively (in that order). The company pays $5,000 per month to rent offices.

Question 1: How much monthly rent cost should Dail and Associates allocate to the information systems department? ___________

Hint: determine the rate per square foot and then calculate the allocation per the IS department.

The activity is the monthly rent and the cost driver is the total office space.

Reference no: EM132633164

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