Question

department a has 1,000 square feet and department b has 2,000 square feet. assuming an allocation rate of $0.50 per square foot, a total of $ should be allocated to department b.

Answer 1

$1000 should be allocated to department B.

Allocation rate = $0.50

Department A has square feet = 1000 square feet

Allocation to be done = $0.50*1000

                                    = $500

Department B has square feet = 2000 square feet

Allocations to be done = $0.50*2000

                                      = $1000

Allocation refers to the distribution of cost to the different entities or department.

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