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Assignment Resultsx C | ezta.mheducation.com/mn.tpx?todospostSubmissionView 5.73/10 Ports 5730% e: Question 4 (of 14) Award: 0 out of 0.50 points Car Mart pays $110,000 rent each year for its two-story building. The space in this building is occupied by five departments as specified here Paint department Engine department Window department Electrical department Accessory department 1,540 square feet of first-floor space 2,860 square feet of first-floor space 1,936 square feet of second-floor space 836 square feet of second-floor space 1,628 square feet of second-floor space The company allocates 60% of total rent expense to the first floor and 40% to the second floor, and then allocates rent expense for each floor to the departments occupying that floor on the basis of space occupied Determine the rent expense to be allocated to each department Amount Allocated | % of Total Cost First floor Second floor Totals First Floor Sq. Feet Paint Dept Engine Dept 0% |$ % of Total Cost

Explanation / Answer

Amount % of Cost Allocated Total First floor 110000 60% 66000 Second floor 110000 40% 44000 Totals 100% 110000 Sq. Feet % of Cost First Floor Total Paint Dept. 1540 35% 23100 Engine Dept. 2860 65% 42900 Totals 4400 100% 66000 Sq. Feet % of Cost Second floor Total Window Dept. 1936 44% 19360 Electrical Dept. 836 19% 8360 Accessory Dept. 1628 37% 16280 Totals 4400 100% 44000 *Calculation of cost of first and second floor: First floor 110000 * 60% 66000 Second floor 110000 * 40% 44000 *Calculation of rent expense of first floor allocated to each department: *Calculation of percentage: Total of paint department and Engin department = (1540 + 2860) = 4400 Paint Dept. 1540 / 4400 *100 35% Engine Dept. 2860 / 4400 *100 65% *Calculation of cost: Total of first floor 66000 Paint Dept. 66000 * 35% 23100 Engine Dept. 66000 * 65% 42900 Total 66000 *Calculation of rent expense of second floor allocated to each department: *Calculation of percentage: Total of window, Electrical and accessory department = (1936 + 836 + 1628) = 4400 Window Dept. 1936 / 4400*100 44% Electrical Dept. 836 / 4400*100 19% Accessory Dept. 1628 / 4400*100 37% *Calculation of cost: Total of second floor 44000 Window Dept. 44000 * 44% 19360 Electrical Dept. 44000 * 19% 8360 Accessory Dept. 44000 * 37% 16280 Total 44000

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