A retailer pays $190,000 rent each year for its two-story building. Space in this building is occupied by five departments as shown here. Department Jewelry Cosmetics Department Housewares Tools Shoes Square feet occupied 1,720 (first-floor) 2,580 (first-floor) Square feet occupied 1,720 (second-floor) 731 (second-floor) 1,849 (second-floor) The company allocates $142,500 of total rent expense to the first floor and $47,500 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. First Floor Jewelry Department Square Feet 1,720 Percent of Total Cost Allocated % Cosmetics Department 2,580 % Totals 4,300 0% $ 0 Second Floor Square Feet Percent of Total Cost Allocated Housewares Department % Tools Department % Shoes Department % Totals 0 0% $ 0
A retailer pays $190,000 rent each year for its two-story building. Space in this building is occupied by five departments as shown here. Department Jewelry Cosmetics Department Housewares Tools Shoes Square feet occupied 1,720 (first-floor) 2,580 (first-floor) Square feet occupied 1,720 (second-floor) 731 (second-floor) 1,849 (second-floor) The company allocates $142,500 of total rent expense to the first floor and $47,500 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. First Floor Jewelry Department Square Feet 1,720 Percent of Total Cost Allocated % Cosmetics Department 2,580 % Totals 4,300 0% $ 0 Second Floor Square Feet Percent of Total Cost Allocated Housewares Department % Tools Department % Shoes Department % Totals 0 0% $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A retailer pays $190,000 rent each year for its two-story building. Space in this building is occupied by five departments as shown
here.
Department
Jewelry
Cosmetics
Department
Housewares
Tools
Shoes
Square feet occupied
1,720 (first-floor)
2,580 (first-floor)
Square feet occupied
1,720 (second-floor)
731 (second-floor)
1,849 (second-floor)
The company allocates $142,500 of total rent expense to the first floor and $47,500 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.
First Floor
Jewelry Department
Square Feet
1,720
Percent of Total
Cost Allocated
%
Cosmetics Department
2,580
%
Totals
4,300
0%
$
0
Second Floor
Square Feet
Percent of Total
Cost Allocated
Housewares Department
%
Tools Department
%
Shoes Department
%
Totals
0
0%
$
0
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