Solution-How much of the monthly rental expense should be

How much of the monthly rental expense should be allocated

Assignment Help Managerial Accounting

Reference no: EM132528023

A company rents a building with a total of 50,000 square feet, which are evenly divided between two floors. The company allocates the rent for space on the first floor at twice the rate of space on the second ?oor. The total monthly rent for the building is $30,000.

Question 1: How much of the monthly rental expense should be allocated to a department that occupies 10,000 square feet on the first ?oor?

A) $8,000. ($30,000x2/3)/25000 = $0.8013q ft

B) $5,000. $0.80 x 10,000 sq ft = $8,000

C) $3,000. 1St floor portion on rent = 28 since it rents at twice the

D) $4,000. rate as the 2nd floor

E) $2,000.

Reference no: EM132528023

Questions Cloud

Identify your current philosophy and nursing theory selected : The purpose of this paper is to define, describe and explain your personal beliefs about the four concepts of the nursing metaparadigm.

Calculated variances suggest to jack regarding actions : What does each of the calculated variances suggest to Jack regarding actions that he should or should not take with respect to investigating

Think about the term contrapasso : Think about the term contrapasso. From the section I gave you, tell me why you think the punishments described are appropriate.

Discuss what critical thinking in nursing practice entails : Discuss what critical thinking in nursing practice entails. Discuss the role of critical thinking and evidence-based practice as they relate to patient outcomes

How much of the monthly rental expense should be allocated : How much of the monthly rental expense should be allocated to a department that occupies 10,000 square feet on the first ?oor?

Calculate the corresponding cost : Implement or incorporate additional language features that may be lacking, i.e. data structures. calculate the corresponding cost. Once an order is processed

Discuss common risk factors for polypharmacy : Polypharmacy is defined as being on 5 or more medicines, and is a major concern for providers as the use of multiple medicines is common in the older population

What details would affect treasury shares : Would this impact accumulated profits free in the statement of changes in shareholder's equity?? What details would affect treasury shares

Discuss kelly legal relationship to the company : Is the defence likely to succeed? Discuss Kelly's legal relationship to the Company and what type of authority he had.

User Account

All Pages

How much of the monthly rental expense should be allocated

Reference no: EM132528023

Reference no: EM132528023

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Prepare a sales budget by month

The error was not discovered in the physical count

Can give an example of a balance sheet recording

Determine the variable costs per haircut

What the cost per equivalent unit for conversion was

Jan martinelli a junior in college has been seeking ways to

What is total profit per product using the selling prices

Classify environmental activity as prevention and detection

Question 1martinez plastics company makes just two product

What are the equivalent units for conversion costs

How is the NPV calculated by Year

Calculate the total pounds of delivery boxes saved

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT