Answer the Following Questions Using the Information Below:
Fremantle Corporation

question 224

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 $120 000 is allocated on the basis of square metreage,the amount allocated to the Sails Department would be:

• A)$84 000
• B)$30 000
• C)$90 000
• D)$20 000

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