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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 1,470 square feet of first-floor space 3,430 square feet of first-floor space 2, 107 square feet of second-floor space 931 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 t Allocated % of Total Cost Sq. Feet % of Total Cost First floor Second floor Totals First Floor Jewelry Dept. Cosmetics Dept. Totals Second Floor Housewares Dept. Tools Dept. Shoes Dept. Totals Sq. Feet % of Total Cost
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