National Retail has two departments, Housewares and Sporting. Indirect expenses for the period follow.

Rent	$ 45,000
Advertising	25,000
Insurance	10,000
Total	$ 80,000

The company occupies 4,000 square feet of a rented building. In prior periods, 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 occupied. The company now wants to allocate indirect expenses using the allocation bases shown below.

Department	Square Feet	Sales	Value of Insured Assets
Housewares	2,040	$ 220,000	$ 44,000
Sporting	1,960	280,000	56,000
Total	4,000	$ 500,000	$ 100,000

Required: 1. Allocate indirect expenses to the two departments using the allocation method used in prior periods.