ABC Lid is a clothing store, and for management and control purposes, the store is divided into 4 different departments. On June 30, 2019, the following information has been collected to determine the best way to allocate the various expenses to each department. Men Wear | Women Wear Kids Wear Shoes Total Sales $580 000 $290 000 $200,000 $150,000 Cost of goods sold 180,000 190,000 50,000 75.000 Other expenses (excluding 80,000 70,000 25,000 15,000 rent and electricity) Floor area occupied (m?) 200 300 400 500 1400 Number of units 1000 600 500 300 2400 consumed The rent and electricity for the year for the store are $70 000 and $45 000 respectively. The manager of each department is paid a bonus of 15% of any profit. The owner of the business is considering allocating the rent expense to each department using as the base either the percentage of total sales or the floor area occupied, and the allocation base of electricity expense is the number of units consumed. " Question 4 Determine if the method of allocating the rent by total sales or floor area would be preferred by the manager of each department. [15 marks] II Proctorio is sharing your screen. Stop sharing Hide