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A retailer pays $150,000 rent each year for its two-story building. The space in this building is occupied by five departments as specified here. Jewelry
A retailer pays $150,000 rent each year for its two-story building. The space in this building is occupied by five departments as specified here. Jewelry department Cosmetics department Housewares department Tools department Shoes department 1,715 square feet of first-floor space 3,185 square feet of first-floor space 2,156 square feet of second-floor space 882 square feet of second-floor space 1,862 square feet of second-floor space The company allocates 65% of total rent expense to the first floor and 35% 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. Amount Allocated % of Total Cost First floor Second floor Totals First Floor Sq. Feet % of Total Cost Jewelry Dept. Cosmetics Dept. Totals % of Total Cost Second Floor Housewares Dept. Tools Dept. Shoes Dept. Totals Sq. Feet
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