Car Mart pays $120,000 rent each year for its two-story building. The space in t
ID: 2489632 • Letter: C
Question
Car Mart pays $120,000 rent each year for its two-story building. The space in this building is occupied by five departments as specified here.
Car Mart pays $120,000 rent each year for its two-story building. The space in this building is occupied by five departments as specified here Paint department Engine department Window department Electrical department Accessory departmen 1,230 square feet of first-floor space 2,870 square feet of first-floor space 1,845 square feet of second-floor space 697 square feet of second-floor space ,558 square feet of second-floor space The company allocates 70% of total rent expense to the first floor and 30% 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. ount Allocated %Of Total Cost First floor Second floor Totals 0% $ 0 First Floor Paint Dept. Engine Dept. Totals Sq. Feet %Of Total Cost 0 0% $ 0 Second Floor Window Dept. Electrical Dept. Accessory Dept. Totals Sq. Feet %Of Total Cost 0 0% $ 0Explanation / Answer
Amount allocated
% of Total
Cost
First floor
70%
$ 84,000
Second floor
30%
$ 36,000
Totals
100%
$ 120,000
First Floor
Sq. Feet
% of Total
Cost
Paint Department
1,230
30%
$ 25,200
Engine Department
2,870
70%
$ 58,800
Totals
4,100
$ 84,000
Second Floor
Sq. Feet
% of Total
Cost
Window Department
1,845
45%
$ 16,200
Electrical Department
697
17%
$ 6,120
Accessory Department
1,558
38%
$ 13,680
4,100
$ 36,000
Amount allocated
% of Total
Cost
First floor
70%
$ 84,000
Second floor
30%
$ 36,000
Totals
100%
$ 120,000
First Floor
Sq. Feet
% of Total
Cost
Paint Department
1,230
30%
$ 25,200
Engine Department
2,870
70%
$ 58,800
Totals
4,100
$ 84,000
Second Floor
Sq. Feet
% of Total
Cost
Window Department
1,845
45%
$ 16,200
Electrical Department
697
17%
$ 6,120
Accessory Department
1,558
38%
$ 13,680
4,100
$ 36,000
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