A retailer allocates $196,000 of total annual rent expense to its four departments in a two-story building: $118,000 is allocated to first floor departments and $78,000 to second floor departments. Each floor's rent is then allocated to departments based on square feet occupied. Department Square Feet Occupied 2,280 1,520 2,660 1,140 A В C D Allocate rent expense to each department. Square Feet First Floor Department A Department B Totals Second Floor Department C Department D Totals Square Feet Floor First First Second Second Percent of Total Percent of Total % % % Cost Allocated Cost Allocated

A retailer allocates $196,000 of total annual rent expense to its four departments in a two-story building: $118,000 is allocated to first floor departments and $78,000 to second floor departments. Each floor's rent is then allocated to departments based on square feet occupied. Department Square Feet Occupied 2,280 1,520 2,660 1,140 A В C D Allocate rent expense to each department. Square Feet First Floor Department A Department B Totals Second Floor Department C Department D Totals Square Feet Floor First First Second Second Percent of Total Percent of Total % % % Cost Allocated Cost Allocated

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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Lalia rents 110,000 square feet of store space for $358,000 per year. The amount of square footage by department is shown below: Department A 45,000 square feet Department B 30,000 square feet Department C 18,000 square feet Department D 17,000 square feet Help allocate the annual rent expense among the four departments on the basis of relative square feet of floor space occupied.
A retailer pays $150,000 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 First Floor Jewelry Department Cosmetics Department Totals The company allocates $97,500 of total rent expense to the first floor and $52,500 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. Second Floor Housewares Department Square feet occupied 1,610 (first-floor) 2,990 (first-floor) Tools Department Shoes Department Totals Square feet occupied 2,070 (second-floor) 828 (second-floor 1,702 (second-floor) Square Feet 1.610 INN 2,990 14,600 Square Feet (1 2,070 828 1,702 14.600 Percent of Total % % HIIH 0% Percent of Total LLL % % % 0 % 201 Cost Allocated $ Cost Allocated 51 2012 277
A retailer pays $140,000 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 First Floor Jewelry Department Cosmetics Department Totals The company allocates $84,000 of total rent expense to the first floor and $56,000 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. Second Floor Housewares Department Square feet occupied 1,610 (first-floor) 2,990 (first-floor) Tools Department Shoes Department Totals Square feet occupied 1,932 (second-floor) 690 (second-floor) 1,978 (second-floor) Square Feet Square Feet 0 0 Percent of Total % % 0% Percent of Total % % 0 % Cost Allocated $ Cost Allocated $ 0 0
A retailer pays $120,000 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 The company allocates $78,000 of total rent expense to the first floor and $42,000 to the second floor. It then allocates rent expense for each floor to the departments on that floor based on square feet occupied. First Floor Jewelry Department Cosmetics Department Totals Square feet occupied 1,750 (first-floor) 3,250 (first-floor) Determine the rent expense to be allocated to each department. Allocate these portions of total rent expense across the departments occupying each floor. Square Feet Second Floor Housewares Department Square feet occupied 2,200 (second-floor) 950 (second-floor) 1,850 (second-floor) Tools Department Shoes Department Totals Square Feet 0 0 Percent of Total % % 0% Percent of Total Cost Allocated $ Cost Allocated % % % 0% S 0 0
A company rents a building with a total of 80,000 square feet, which are evenly divided between two floors. The total monthly rent for the building is $75,000. The company allocates $50,000 of total rent expense to the first floor and $25,000 of total rent expense to the second floor. How much of the monthly rental expense should be allocated to a department that occupies 16,000 square feet on the first floor?
Allocate a retailer’s purchasing department’s costs of $20,000 to its operating departments using each department’s percentage of total purchase orders.
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.
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
We are preparing a Departmental Income Statement. We must allocate indirect expenses between Sales Dept. 1 and Sales Dept. 2. For this month, Insurance expenses = $50,000. They are allocated on the basis of square footage. Sales Dept. 1 occupies 10,000 square feet; Sales Dept. 2 occupies 18,000 square feet. How much insurance expense will be allocated to Sales Dept. 2? *Round to dollars.
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 First Floor Jewelry Department Cosmetics Department Totals Square feet occupied. 1,760 (first-floor) 2,640 (first-floor) The company allocates $123,500 of total rent expense to the first floor and $66,500 to the second floor. It then allocates rent expense for each floor to the departments on that floor based on square feet occupied. Second Floor Housewares Department Square feet occupied 1,948 (second-floor) Determine the rent expense to be allocated to each department. Allocate these portions of total rent expense across the departments occupying each floor. Square Feet Tools Department Shoes Department Totals 880 (second-floor) 1,672 (second-floor) 0 Square Feet 0 Percent of Total % 0% Percent of Total % % % 0% Cost Allocated S Cost Allocated $ 0
A retailer pays $170,000 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 1,410 (first-floor) 3,290 (first-floor) Square feet occupied 2,115 (second-floor) 893 (second-floor) 1,692 (second-floor) The company allocates $110,500 of total rent expense to the first floor and $59,500 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 Percent of Total Cost Allocated % Cosmetics Department % Totals 0 0% $ 0 Second Floor Square Feet Percent of Total Cost Allocated Housewares Department % Tools Department % Shoes Department % Totals 0 0% $ 0
The Calling Company has three departments that occupy floor space in the 50,000 square feet building it rents for $500,000 annually. Department A occupies 25,000 sq ft; Department B occupies 10,000 sq ft; and Department C occupies 15,000 sq ft. How much annual rent expense should be allocated to Department B?