Joy Co Allocates Overhead Expenses to All Departments on the Basis

question 23

Multiple Choice

Joy Co. allocates overhead expenses to all departments on the basis of floor space (sq. ft.) occupied by each department. This year total overhead expenses were $22,000. Department A. occupied 15,000 sq. ft., Department B. 18,000 sq. ft., and Department C. 9,000 sq. ft. The amount of overhead allocated to Department B is (round to the nearest dollar) :

• A)$1,800
• B)$9,429
• C)$9,900
• D)$39,600
• E)None of these

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