A company rents a small building with 10 000 square feet of space for $100, 000 per year . The rent is allocated to the company's three departments on the basis of the value of the space occupied by each Department I occupies 1 500 square feet of ground -floor space Department 2 occupies 3 , 500 square feet of ground - flow space , and Department 3 occupies 5 ,100 square feet of second- floor space . If rent for comparable floor space in the neighborhood averages $15 00 per sq . It . for ground- floor space and $10 per sq . It . for second- floor space , what annual rent expense should be charged to each department ? Answer Value Total Dept Sq Et Foot Valu Allocated $22, 500 18% 18.001 3 500 52 500 4 42.000 5 000 10 50 090 40 40 000 10.090 $125 000 $100.000