Stohr Company Has Two Departments, New and Old

Multiple Choice

Stohr Company has two departments, New and Old. Central costs are allocated to the two departments in various ways. Relevant information is presented below:

-If total rent expense is $192,000 and it is allocated on the basis of square footage, the amount allocated to the Old Department should be

A) $57,600.
B) $160,000.
C) $144,000.
D) $48,000.