Assume That a Factory Seeks to Allocate Rent to Several

question 30

Multiple Choice

Assume that a factory seeks to allocate rent to several departments that occupy the factory.The factory is occupied by all of the departments.Which of the following is the most logical cost driver for allocating the factory rent?

• A) Number of employees
• B) Square footage occupied by each department
• C) Machine hours
• D) Number of labor hours in each department