Discuss the below:
Q: ALLOCATING OPERATING EXPENSE-SQUARE FEET 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.