The Emery Construction Company Occupies 85,000 Square Feet for Construction

Multiple Choice

The Emery Construction Company occupies 85,000 square feet for construction of mobile homes.There are two manufacturing departments,finishing and assembly,and four service departments labeled S1,S2,S3,and S4.Information relevant to Emery is as follows: Rent paid for the area used is $720,000.How much rent is allocable to the assembly department using the direct method of allocation?

A) $420,000.
B) $332,500.
C) $300,000.
D) $252,000.