A retailer pays $160,000 rent each year for its two-story building. The space in this building is occupled by five departments as specified here. Department Jewelry Cosmetics Housewares Tools Shoes Square feet occupied 1,575 (first-floor) 2,925 (first-floor) 2,625 (second-floor) 810 (Second-floor) 1,665 (second-floor) The company allocates 75% of total rent expense to the first floor and 25% to the second floor, and then allocates rent expense for each floor to the departments occupying that fioor on the basis of space occupied. Determine the rent expense to be allocated to each department 1005 Step 1: Allocate total rent expense between the two floors. Amount % of Total Cost Allocated First floor $ 160,000 Second floor 80.000 25 % 40.000 Tota's 100 000 Step 2: Allocate these portions of total rent expense across the departments occupying each floor First Floor Sq. Feet % of Total Cost Jewelry Dept 1.575 35% Cosmetics Dept 2.925 Totals 100% Second Floor Sq Feet of Total Housewares Dept Tools Dept Shoes Dest 4500