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The facilities department of Marshfield Clinic has direct costs of $1,000,000. The clinic's four patient...

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Accounting

The facilities department of Marshfield Clinic has direct costs of $1,000,000. The clinic's four patient service departments utilize the following amounts of space: Department A = 5,000 square feet Department B = 10,000 square feet Department C = 15,000 square feet Department D = 20,000 square feet Assuming the cost driver for facilities costs is the amount of occupied space (i.e.,square feet), what is the allocation rate?

(A) $20 per square foot

(B) $50 per square foot

(C) $66.67 per square foot

(D) $100 per square foot

(E) $200 per square foot

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