Allocate indirect expenses to the two departments using the allocation method used in prior periods

Allocate indirect expenses to the two departments. Rent expense is allocated based on square feet occupied. Advertising expense is allocated based on total sales. Insurance expense is allocated based on the value of insured assets.

The company occuples 4,000 square feet of a rented bullding. In prior perlods, the company divided the $80,000 of Indirect expenses by 4,000 square feet to find an average cost of $20 per square foot, and then allocated Indirect expenses to each department based on the square feet It occupled. The company now wants to allocate Indirect expenses using the allocation bases shown below. \begin{tabular}{|l|c|c|cc|} \multicolumn{1}{c|}{ Department } & Square Feet & Rate & \multicolumn{2}{c|}{ Total } \\ \hline Housewares & & & $ & 0 \\ \hline Sporting & & & $ & 0 \\ \hline \end{tabular} Allocate $45,000 of rent using square feet occupied