Question
A retailer pays $120,000 rent each year for its two-story building. Space in this building is occupied by five departments as shown here. Department
A retailer pays $120,000 rent each year for its two-story building. Space in this building is occupied by five departments as shown here. Department Jewelry Cosmetics Department Housewares Tools Shoes Square feet occupied 1,350 (first-floor) 3,150 (first-floor) Square feet occupied 1,845 (second-floor) 810 (second-floor) 1,845 (second-floor) The company allocates $72,000 of total rent expense to the first floor and $48,000 to the second floor. It then allocates rent expense for each floor to the departments on that floor based on square feet occupied. Determine the rent expense to be allocated to each department. Allocate these portions of total rent expense across the departments occupying each floor. First Floor Jewelry Department Square Feet Percent of Total Cost Allocated % Cosmetics Department % Totals 0 0% $ 0 Second Floor Square Feet Percent of Total Cost Allocated Housewares Department % Tools Department Shoes Department % % Totals 0 0% $ 0
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