Mass Media Company Departmental Expense Allocations For the year ended December 31 Allocation Base Expense Account General Office Dept. TV Dept. Radio Dept. $ 60,000 5,000 $45,000 3,000 $20,000 2,000 Direct Expenses Salaries Payroll records Supplies Requisitions Indirect Expenses Rent expense Floor space Utilities expense Floor space General office expense Total department expenses 42,000 7,000 18,000 3,000 60,000 10,000 50,000 $190,000 $50,000 $50,000 $97,000 $55,500 Mass Media Company Floor Space Analysis Square Feet Percent of Square Feet Rent Expense Allocation Utilities Expense Allocation TV Department Radio Department Total 2,800 1,200 4,000 70% 30% 100% $42,000 18,000 $60,000 $7,000 3,000 $10,000 Knowledge Check 01 Rent expense of $3,000 is allocated to Department A and Department B based on square footage. Department A has 5,000 square feet and Department B has 2,500 square feet. The dollar amount of rent expense allocated to Department B is