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NEITHER ANSWERS ARE CORRECT For its two-story building, each year Imposters Company pays rent of $150,000. The two story building space has 5 departments mentioned
NEITHER ANSWERS ARE CORRECT
For its two-story building, each year Imposters Company pays rent of $150,000. The two story building space has 5 departments mentioned below. Jewelry department Cosmetics department Housewares department Tools department Shoes department 1,760 square feet of first-floor space 2, 640 square feet of first-floor space 1,804 square feet of second-floor space 704 square feet of second-floor space 1,892 square feet of second-floor space For the 1st floor, Imposters Company allocates 60% of total rent expense and 40% to the 2nd floor. Rent expense is allocated for each floor to the departments occupying that floor on the basis of space occupied. What amount of rent expense should be allocated to the different department? Amount Allocated $ 4,400 4,400 $ $ $ $ First floor Second floor Totals First Floor Jewelry Dept. Cosmetics Dept. Totals Second Floor Housewares Dept. Tools Dept. Shoes Dept. Totals % of Total 60% 60% 40% 100% % of Total 40% 60% 100% % of Total 41% 16% 43% 100% Sq. Feet 1,760 2,640 4,400 Sq. Feet 1,804 704 1,892 4,400 Cost 2,640 1,760 4,400 Cost 36,000 54,000 90,000 Cost 24,600 9,600 25,800 60,000 $ $ $ Jewelry department Cosmetics department Housewares department Tools department Shoes department 1,760 square feet of first-floor space 2,640 square feet of first-floor space 1,804 square feet of second-floor space 704 square feet of second-floor space 1,892 square feet of second-floor space For the 1st floor, Imposters Company allocates 60% of total rent expense and 40% to the 2nd floor. Rent expense is allocated for each floor to the departments occupying that floor on the basis of space occupied. What amount of rent expense should be allocated to the different department? Answer is complete but not entirely correct. Amount Allocated $ 4,400 4,400 X $ $ $ First floor Second floor Totals First Floor Jewelry Dept. Cosmetics Dept. Totals Second Floor Housewares Dept. Tools Dept. Shoes Dept. Totals Sq. Feet 1,760 2,640 4.400 % of Total 60% 40% 100% % of Total 40% 60% 100% % of Total 41% 16% 43% 100% Cost 2,640 1,760 4,400 Cost 36,000 54,000 90,000 Cost 24,600 9,600 25,800 60,000 $ $ Sq. Feet 1,804 704 1,892 4,400 $ Amount Allocated % of Total Cost First Floor 90,000 60 Second Floor 60,000 40 Totals 150,000 100 First floor Square feet % of Total Cost Jewelry Department 1760 40 36,000 Cosmetics Department 2640 60 54,000 Totals 4400 90,000 100 % of Total Second floor Square feet Teet Cost House ware Department 1804 41 24,600 Tools Department 704 9,600 Shoes Department 1892 25,800 43 100 Totals 4400 60,000Step by Step Solution
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