QS 22-8 Rent expense allocated to departments LO P2 A retailer pays $140,000 rent each year for its two-story building. The space in this building is occupied by five departments as specified here. points eBook Hint Jewelry department Cosmetics department Housewares department Tools department Shoes department 1,575 square feet of first-floor space 2,925 square feet of first-floor space 1.935 square feet of second-floor space 720 square feet of second-floor space 1,845 square feet of second-floor space Print References The company allocates 70% of total rent expense to the first floor and 30% 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 Amount Allocated $ 140,000 140,000 $ % of Total 70% 30% 100% % of Total 98,000 42,000 140,000 Cost $ First floor Second floor Totals First Floor Jewelry Dept. Cosmetics Dept. Totals Second Floor Housewares Dept. Tools Dept. Shoes Dept. Totals $ Sq. Feet 1,575 2,925 4,500 Sq. Feet 1,935 720 1,845 4,500 0% % of Total Cost 0% $ 0