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 Housevares Tools Shoes 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. First Floor Jewelry Department Cosmetics Department Totals Square feet ooccupled 1,760 (first-floor) 2,640 (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 Cost Allocated Second Floor Housewares Department Square feet occupied 1,848 (second-floor) 880 (second-floor) 1,672 (second-floor) Tools Department Shoes Department Totals Square Feet 0 Percent of Total 0% Percent of Total % 0% $ Cest Allocated $ 0

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 Housevares Tools Shoes 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. First Floor Jewelry Department Cosmetics Department Totals Square feet ooccupled 1,760 (first-floor) 2,640 (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 Cost Allocated Second Floor Housewares Department Square feet occupied 1,848 (second-floor) 880 (second-floor) 1,672 (second-floor) Tools Department Shoes Department Totals Square Feet 0 Percent of Total 0% Percent of Total % 0% $ Cest Allocated $ 0

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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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
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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.
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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.
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XYZ owns a branch in New York. During the year, the home office shipped to the branch supplies costing P120,000 at a billed price of 20% above cost. The inventories of supplies at the branch were as follows: Beg Inventory, P90,000 Ending inventory P108,000. On December 31, the home office holds inventories of P160,500 which included P10,500 held on consignment. Both locations use the periodic inventory method. Compute for the inventories in a combined Statement of Financial Position as of December 31.
A company rents a small building with 10,000 square feet of space for $100,000 per year. The rent is allocated to the company's three departments on the basis of the value of the space occupied by each. Department 1 occupies 1,500 square feet of ground-floor space, Department 2 occupies 3,500 square feet of ground-floor space, and Department 3 occupies 5,000 square feet of second-floor space. If rent for comparable floor space in the neighborhood averages $15.00 per sq. ft. for ground-floor space and $10 per sq. ft. for second-floor space, what annual rent expense should be charged to each department? Edit Format Table
Laila rents 110,000 square feet of store space for $358,000 per year. The amount of square footage by department is