Department A occupies 10,000 square feet, Department B occupies 6,000 square feet, and Department C occupies 4,000 square feet. What percent of the total overhead expense should be allocated to Department B?

60 percent

40 percent

30 percent

10 percent

The correct answer is C. 30 percent

Step-by-step explanation:

What percent of the total overhead expense should be allocated to Department B?

For answering this question, we should make the following calculations this way:

Company's footprint = Department A + Department B + Department C

Company's footprint = 10,000 + 6,000 + 4,000

Company's footprint = 20,000 square feet

Overhead expense allocated to Department B = Department B footprint/Company's footprint

Overhead expense allocated to Department B = 6,000/20,000

Overhead expense allocated to Department B = 0.3 = 30%

The correct answer is C. 30 percent