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 Housevares Tools Shoes Square feet occupied 1,505 (first-floor) 2,795 (first-floor) 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. First Floor Jewelry Department Cosmetics Department Totals Square feet occupied 1,806 ( 6 (second-floor) 688 (second-floor) 1,806 (second-floor) Determine the rent expense to be allocated to each department. Second Floor Housewares Department Square Feet 0 Square Foot Percent of Total % % 0% Percent of Total Cost Allocated S Cost Allocated
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 Housevares Tools Shoes Square feet occupied 1,505 (first-floor) 2,795 (first-floor) 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. First Floor Jewelry Department Cosmetics Department Totals Square feet occupied 1,806 ( 6 (second-floor) 688 (second-floor) 1,806 (second-floor) Determine the rent expense to be allocated to each department. Second Floor Housewares Department Square Feet 0 Square Foot Percent of Total % % 0% Percent of Total Cost Allocated S 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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