A retailer pays $120,000 rent each year for its two-story building. The space in this building is occupied by five departments as specified here.

Department	Square feet occupied
Jewelry	1,540		(first-floor)
Cosmetics	2,860		(first-floor)
Housewares	1,892		(second-floor)
Tools	704		(second-floor)
Shoes	1,804		(second-floor)

The company allocates 60% of total rent expense to the first floor and 40% to the second floor, and then allocates rent expense for each floor to the departments occupying that floor on the basis of space occupied. Determine the rent expense to be allocated to each department.

Step 1: Allocate total rent expense between the two floors.
	Amount Allocated	% of Total		Cost
First floor			%
Second floor			%
Totals			%
Step 2: Allocate these portions of total rent expense across the departments occupying each floor.
First Floor	Sq. Feet	% of Total		Cost
Jewelry Dept.			%
Cosmetics Dept.			%
Totals			%
Second Floor	Sq. Feet	% of Total		Cost
Housewares Dept.			%
Tools Dept.			%
Shoes Dept.			%
Totals			%