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

Question 95

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:  Men’s  Women’s  Children’s  Labor dollars $530,000$775,000$240,000 Number of employees 10204 Square footage 3,0008,0001,000 Number of sales transactions 300,000900,00090,000\begin{array} { l r r r } & \text { Men's } & \text { Women's } & \text { Children's } \\\text { Labor dollars } & \$ 530,000 & \$ 775,000 & \$ 2 4 0 , 0 0 0 \\\text { Number of employees } & 10 & 20 & 4 \\\text { Square footage } & 3,000 & 8,000 & 1,000 \\\text { Number of sales transactions } & 300,000 & 900,000 & 90,000\end{array} Using the most appropriate cost driver,how much rental cost should be allocated to the Women's Department? (Do not round intermediate calculations.Round final answer to the nearest dollar.)


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

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