Bank's Department Store Has Three Departments: Men's,Women's and Children's Using the Most Appropriate Cost Driver,how Much Rental Cost (Rounded

question 135

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: $\begin{array}{|l|r|r|r|}\hline & \text { Men's } & \text { Women's } & \text { Children's } \\\hline \text { Labor dollars } & \$ 530,000 & \$ 775,000 & \$ 240,000 \\\hline \text { Number of employees } & 10 & 20 & 4 \\\hline \text { Square footage } & 3,000 & 8,000 & 1,000 \\\hline \text { Number of sales transactions } & 300,000 & 900,000 & 90,000 \\\hline\end{array}$ Using the most appropriate cost driver,how much rental cost (rounded to the nearest dollar) should be allocated to the Women's Department? (Do not round your intermediate calculations. )

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

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