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QS 2 2 - 9 ( Algo ) Rent expense allocated to departments LO P 2 A retailer pays $ 1 6 0 , 0
QS Algo Rent expense allocated to departments LO P
A retailer pays $ rent each year for its twostory building. Space in this building is occupied by five departments as shown here.
tableDepartmentSquare feet occupiedJewelryfirstfloorCosmeticsfirstfloorDepartmentSquare feet occupiedHousewaressecondfloorToolssecondfloorShoes secondfloor
The company allocates $ of total rent expense to the first floor and $ to the second floor. It then allocates rent expense for each floor to the departments on that floor based on square feet occupied.
Determine the rent expense to be allocated to each department.
tableFirst Floor,Square Feet,Percent of Total,Cost AllocatedJewelry Department,,,Cosmetics Department,,,TotalsSecond Floor,Square Feet,Percent of Total,Cost Allocated,Housewares Department,,,Tools Department,,,Shoes Department,,,Totals
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