Answer:
Rent assigned to preparation and setup cost pool is $714.84
Explanation:
Preparation and setup takes 1,500 square feet out of the total 6,400 square feet available,hence the factory rent assigned to preparation and setup from the total rent of $3,050 i calculated thus:
Preparation and setup assigned rent=total rent/total square feet*preparation and setup square feet
=$3050/6400*1500
=$714.84
That represents the rent amount attributable to preparation and setup cost pool on monthly basis