Question

A retailer pays $190,000 rent each year for its two-story building. The space in this building is occupied by five departments as specified here.

Jewelry department	1,470		square feet of first-floor space
Cosmetics department	3,430		square feet of first-floor space
Housewares department	2,058		square feet of second-floor space
Tools department	980		square feet of second-floor space
Shoes department	1,862		square feet of second-floor space

The company allocates 60% of total rent expense to the first floor and 40% 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.
  

Answer 1

	Amount Allocated	% of Total	Cost
First Floor	190,000.00	60%	114,000.00
Second Floor	190,000.00	40%	76,000.00
Total		100%	190,000.00
First Floor	Square Feet	% of Total	Cost
Jewelry Department	1,470.00	30%	34,200.00
Cosmetics Department	3,430.00	70%	79,800.00
Total	4,900.00	100%	114,000.00
Second Floor	Square Feet	% of Total	Cost
Housewares Department	2,058.00	42%	31,920.00
Tools Department	980.00	20%	15,200.00
Shoes Department	1,862.00	38%	28,880.00
Total	4,900.00	100%	76,000.00