High Traffic Products Corporation Has Two Departments, Small and Large

question 76

Multiple Choice

High Traffic Products Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways.

If total rent expense of $144,300 is allocated on the basis of square footage, the amount allocated to the Large Department would be ________. (Do not round interim calculations. Round the final answer to the nearest whole dollar.)

• A) $103,000
• B) $41,100
• C) $72,150
• D) $103,200

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Definitions:

State Law

Legal regulations and rules that are enacted and enforced by individual states within a country, differing from federal or national laws.

Obtaining Insurance

The process of acquiring a policy that provides financial protection against losses or damages from various risks.

Proportionate Share

A part or portion of something that is divided among parties based on a specific criterion, often related to ownership or contribution.

Multiple Insurance

The practice of holding more than one insurance policy on the same item or person, often to provide additional coverage in case of loss or damage.