QS 22-7 Rent expense allocated to departments LO P2 A retaller pays $200,000 rent each year for its two-story building. The space in this building is occupied by five departments as specified here. Department Square feet occupied Jewelry 1,715 (first-floor) Cosmetics 3,185 (first-floor) Housewares 2,205 (second-floor) Tools 735 (second-floor) Shoes 1,960 (second-floor) The company allocates 65% of total rent expense to the first floor and 35% to the second floor, and then allocates rent expense for each floor to the departments occupying that floor on the basis of space occupied. Determine the rent expense to be allocated to each department. Cost Step 1: Allocate total rent expense between the two floors. Amount % of Total Allocated First floor % Second floor % Totals 0 % $ 0 Cost Step 2: Allocate these portions of total rent expense across the departments occupying each floor. First Floor Sq. Feet % of Total Jewelry Dept. % Cosmetics Dept. 1% Totals 0 0 % $ Second Floor Sq. Feet % of Total Housewares Dept. % Tools Dept. % Shoes Dept. % Totals 0 0 % $ 0 Cost 0