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

question 38

Multiple Choice

Bank's Department Store has three departments: Men's, Women's and Children's. The store incurred $50,000 of store rental costs during the current year. The departments identified the following cost drivers: $\begin{array}{lrrr}&\text { Men's }&\text {Women's}&\text { Children's }\\\text { Labor dollars } & \$ 530,000 & \$ 775,000 & \$ 240,000 \\\text { Number of employees } &10& 20 &4\\\text { Square footage } & 3,00 & 8,000 & 1,000 \\\text { Number of sales transactions } &300,000 & 900,000 &90,000\end{array}$ Using the most appropriate cost driver, how much rental cost should be allocated to the Women's Department? (Do not round intermediate calculations. Round final answer to the nearest dollar.)

• A) $33,333
• B) $29,412
• C) $25,081
• D) $34,884

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