Allocate the annual rent expense among the four departments

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Problem - Johnson Company rents 5,000 square feet of store space for $40,000 per year. The amount of square footage by department is as follows:

Department A: 1,200 sq. ft.

Department B: 1,400 sq. ft.

Department C: 1,500 sq. ft.

Department D: 900 sq. ft.

Allocate the annual rent expense among the four departments on the basis of relative square feet of floor space occupied.

Reference no: EM132724487

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