A retailer pays $130,000 rent each year for its two-story building. The space in this building is occupied by five departments as specified here. Department Jewelry Cosmetics Housewares Tools Shoes Square feet occupied 1,440 (first-floor) 3,360 (first-floor) 2,064 (second-floor) 816 (second-floor) 1,920 (second-floor) The company allocates 70% of total rent expense to the first floor and 30% to the second floor, and then allocates rent expense for each floor to the departments occupying that floor on the basis of space occupied, The company allocates 70% of total rent expense to the first floor and 30% 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. 55 Cost Step 1: Allocate total rent expense between the two floors. Amount % of Total Allocated 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 Jewelry Dept. % Cosmetics Dept % Totals Second Floor Sq. Feet % of Total Housewares Dept. % Tools Dept % Shoes Dept % Totals % Cost Cost