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A retailer pays $180,000 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 $180,000 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 1,585 square feet of first-floor space 2,795 square feet of first-floor space 1,763 square feet of second-floor space square feet of second-floor space 817 1,728 square feet of second-floor space 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. % of Total Cost First floor Second floor Totals First Floor Sq. Feet | % of Total Cost Jewelry Dept. Cosmetics Dept Totals Second Floor Sq. Feet | % of Total Cost Tools Dept. Shoes Dept Totals
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