Bank's Department Store Has Three Departments: Men's, Women's and Children's

question 125

Multiple Choice

Bank's Department Store has three departments: Men's, Women's and Children's. The store incurred $24,000 of store rental costs during the current year. The departments identified the following cost drivers: $\begin{array}{lrrr}&\text { Men's }&\text {Women's}&\text { Children's }\\\text { Labor dollars } & \$ 524,000 & \$ 769,000 & \$ 234,000 \\\text { Number of employees } & 26 & 36 & 20 \\\text { Square footage } & 2,400 & 7,400 & 1,500 \\\text { Number of sales transactions } & 294,000 & 894,000 & 84,000\end{array}$ Using the most appropriate cost driver, how much rental cost should be allocated to the Women's Department? (Do not round intermediate calculations. Round your answer to the nearest dollar.)

• A) $15,717
• B) $5,854
• C) $3,678
• D) $1,585