Car Mart pays $ 130,000 rent each year for its two- story building. The space in this

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Car Mart pays $ 130,000 rent each year for its two- story building. The space in this building is occupied by five departments as specified here.

Paint department . . . . . . . . . . . . 1,440 square feet of first-floor space

Engine department . . . . . . . . . . . 3,360 square feet of first-floor space

Window department . . . . . . . . . 2,016 square feet of second-floor space

Electrical department . . . . . . . . . 960 square feet of second-floor space

Accessory department . . . . . . . . 1,824 square feet of second-floor space 

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. (Round percents to the nearest one- tenth and dollar amounts to the nearest whole dollar.)


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Fundamental accounting principle

ISBN: 978-0078025587

21st edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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