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36 Kelley Stores pays $140,000 in rent each year for its 2 story building. Kelley Stores store space in this building is occupied by five
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Kelley Stores pays $140,000 in rent each year for its 2 story building. Kelley Stores store space in this building is occupied by five different departments as identified below. Jewelry Dept Cosmetics Dept Housewares Dept Tools Dept Shoes Dept 1,680 Square Feet of 1st Floor Space 3,120 Square Feet of 1st Floor Space 1,968 Square Feet of 2nd Floor Space 768 Square Feet of 2nd Floor Space 2,064 Square Feet of 2nd Floor Space Kelley Stores allocates 70% of total rent expense to the 1st floor and 30% of the total rent expense to the 2nd floor. Kelley Stores then allocates rent expense for each floor to the departments occupying that floor on the basis of square feet of space occupied. Please calculate the amount of rent expense to be allocated to each of the 5 departments, of Total Cost Amount Allocated First floor Second floor Totals First Floor Sq. Feet Jewelry Dept. Cosmetics Dept Totals 0 Second Floor Sq. Feet Housewares Dept Tools Dept. 0% $ % of Total Cost 0% $ % of Total Cost Step by Step Solution
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