J-Block B 12/20 Didak Ltd is a clothing store and for management and control purposes the business is divided into 3 departments. For the year ended 30 June 2021 the following information has been collected to determine the best way to allocate rent expense to each department. Evening wear Day wear Shoes Total Sales $480 000 $288 000 $192 000 $960 000 Floor area occupied (m2) 200 300 100 600 Profit before rent allocation $96 000 $42 000 $38 000 $176 000 The rent for the year for the store is $60 000. The manager of each department is paid a bonus of 10% of any profit in excess of 10% of sales for the department. 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. Required: Determine if the method of allocating the rent by total sales or floor area would be preferred by the manager of each department. [10 marks] 1 A- B I !!! ILU E de