A retailer pays $140,000 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 1,880 (first-floor) 2,820 (first floor) Square feet occupied 1,974 (second-floor) 940 (second-floor) 1,786 (second-floor) The company allocates $105,000 of total rent expense to the first floor and $35,000 to the second floor. It then allocates rent expense for each floor to the departments on that floor based on square feet occupied.

A retailer pays $140,000 rent each year for its two-story building. Space in this building is occupied by five departments as shown here. The company allocates $105,000 of total rent expense to the first floor and $35,000 to the second floor. It then allocates ren expense for each floor to the departments on that floor based on square feet occupied