Rent expense of $3,000 is allocated to Department A and Department B based on square footage. Department A has 5,000 square feet and Department B has 2,500 square feet.

 Rent expense of $3,000 is allocated to Department A and Department B based on square footage. Department A has 5,000 square feet and Department B has 2,500 square feet.



Explanation 
Total square footage is 7,500 (5,000 for Department A plus 2,500 for Department B). Department B’s percentage is computed as (2,500/7,500) × $3,000 = $1,000.