1. RetailMart allocates its store operating costs across its three departments using activity-based costing. The following table summarizes the costs and cost drivers:

Department	Total Costs ($)	Cost Driver	Cost Driver Quantity
Electronics	$300,000	Sales revenue	$3,000,000
Clothing	$200,000	Floor area (sq. ft.)	20,000 sq. ft.
Home Goods	$150,000	Number of SKUs	5,000 SKUs
Total	$650,000

• Electronics department generated $1,500,000 in sales revenue, Clothing department occupies 10,000 sq. ft., and Home Goods department has 2,000 SKUs.

a. Allocate RetailMart's operating costs to Electronics, Clothing, and Home Goods departments using activity-based costing. b. Calculate the cost per dollar of sales revenue for Electronics, cost per sq. ft. of floor area for Clothing, and cost per SKU for Home Goods based on the allocated costs. c. Analyze the results and discuss which department has the highest cost per unit and why.