A retailer pays $130,000 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 . 1,440 (first-floor) Cosmetics . 3,360 (first-floor) Housewares . 2,016 (second-floor) Tools . 960 (second-floor) Shoes . 1,824 (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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A retailer pays $130,000 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 . 1,440 (first-floor)
Cosmetics . 3,360 (first-floor)
Housewares . 2,016 (second-floor)
Tools . 960 (second-floor)
Shoes . 1,824 (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.

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