How much of this year's total rent expense of $225,000 will be allocated to Department C, which occupies 30,000 square feet out of a total of 120,000 square feet?

How much of this year's total rent expense of $225,000 will be allocated to Department C, which occupies 30,000 square feet out of a total of 120,000 square feet?

• A. $50,000
• B. $45,000
• C. $56,250
• D. $60,000

Answer: (C)

To determine how much of the total rent expense should be allocated to Department C, it is essential to calculate the proportion of the total space that Department C occupies. The rent expense is typically allocated based on the square footage occupied by each department in relation to the total square footage available. Department C occupies 30,000 square feet and the total square footage is 120,000 square feet. The first step is to find the proportion of space that Department C occupies: \[ \text{Proportion of Department C} = \frac{\text{Square footage of Department C}}{\text{Total Square footage}} = \frac{30,000}{120,000} = \frac{1}{4} \text{ or } 0.25 \] Next, we multiply this proportion by the total rent expense to find the amount allocated specifically to Department C: \[ \text{Rent expense allocated to Department C} = \text{Total Rent Expense} \times \text{Proportion of Department C} \] Now plugging in the values: \[ \text{Rent expense allocated to Department C} = 225,000 \times 0.25 = 56,250 \] Thus, the amount

To determine how much of the total rent expense should be allocated to Department C, it is essential to calculate the proportion of the total space that Department C occupies. The rent expense is typically allocated based on the square footage occupied by each department in relation to the total square footage available.

Department C occupies 30,000 square feet and the total square footage is 120,000 square feet. The first step is to find the proportion of space that Department C occupies:

[

\text{Proportion of Department C} = \frac{\text{Square footage of Department C}}{\text{Total Square footage}} = \frac{30,000}{120,000} = \frac{1}{4} \text{ or } 0.25

]

Next, we multiply this proportion by the total rent expense to find the amount allocated specifically to Department C:

[

\text{Rent expense allocated to Department C} = \text{Total Rent Expense} \times \text{Proportion of Department C}

]

Now plugging in the values:

[

\text{Rent expense allocated to Department C} = 225,000 \times 0.25 = 56,250

]

Thus, the amount