Answer the Following Questions Using the Information Below:
Fremantle Corporation

question 44

Multiple Choice

Answer the following questions using the information below:
Fremantle Corporation has two departments,Sails and Masts.Central costs could be allocated to the two departments in various ways.
$$\begin{array} { l r r } & \text { Sails Department } & \text { Masts Department } \\\text { Square metreage } & 6000 & 18000 \\\text { Number of employees } & 1120 & 480 \\\text { Sales } & \$ 400000 & \$ 2000000\end{array}$$
-If a total rent expense of $288 000 is allocated on the basis of square metreage,the amount allocated to the Masts Department would be:

• A)$72 000
• B)$240 000
• C)$86 400
• D)$216 000

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Definitions:

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Defective Product

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