Requirea Information [The following information applies to the questions displayed below.) National Bank has several departments that occupy both floors of a two-story building. The departmental accounting system has a single account, Building Occupancy Cost, in its ledger. The types and amounts of occupancy costs recorded in this account for the current period follow. Depreciation-Building Interest-Building mortgage Taxes-Building and land Gas (heating) expense Lighting expense Maintenance expense Total occupancy cost $18,000 27,000 9,000 3,000 3,000 6,000 $66,000 The building has 4,000 square feet on each floor. In prior periods, the accounting manager merely divided the $66,000 occupancy cost by 8,000 square feet to find an average cost of $8.25 per square foot and then charged each department a building occupancy cost equal to this rate times the number of square feet that it occupied. Diane Linder manages a first-floor department that occupies 1,000 square feet, and Juan Chiro manages a second-floor department that occupies 1,800 square feet of floor space. In discussing the departmental reports, the second-floor manager questions whether using the same rate per square foot for all departments makes sense because the first floor space is more valuable. This manager also references a recent real estate study of average local rental costs for similar space that shows first floor space worth $30 per square foot and second floor space worth $20 per square foot (excluding costs for heating, lighting, and maintenance). - Allocate the depreciation, interest, and taxes occupancy costs to the Linder and Chiro departments in proportion the relative market values of the floor space. Allocate the heating, lighting, and maintenance costs to the Linder nd Chiro departments in proportion to the square feet occupied (ignoring floor space market values). (Round cost nswers to 2 decimal places. Round your intermediate calculations to 2 decimal places.) Answer is not complete. Department Linder's Department Chiro's Department Square Footage 4,000 Rate Total 30.00 120,000 $ 0. WILLIAMS COMPANY Departmental Income Statements For Year Ended December 31, 2019 Clock Mirror Combined Sales $130,000 $55,000 $185,000 Cost of goods sold 63,700 34,100 97,800 Gross profit 66,300 20,900 87,200 Direct expenses Sales salaries 20,000 7,000 27,000 Advertising 1,200 500 1,700 Store supplies used 900 400 1,300 Depreciation-Equipment 300 1,800 Total direct expenses 23,600 8,200 31,800 Allocated expenses Rent expense 7,020 3,780 10,800 Utilities expense 2,600 1,400 4,000 Share of office 10,500 4,500 15,000 department expenses Total allocated 20,120 9,680 29,800 expenses Total expenses 43,720 17,880 61,600 Net income $ 22,580 $ 3,020 $ 25,600 Williams plans to open a third department in January 2020 that will sell paintings. Management predicts that the new department will generate $50,000 in sales with a 55% gross profit margin and will require the following direct expenses: sales salaries, $8,000; advertising. $800; store supplies, $500; and equipment depreciation, $200. It will fit the new department into the current rented space by taking some square footage from the other two departments. When opened, the new Painting department will fill one-fifth of the space presently used by the Clock department and one-fourth used by the Mirror department Management does not predict any increase in utilities costs, which are allocated to the departments in proportion to occupied space (or rent expense). The company allocates office department expenses to the operating departments in proportion to their sales. It expects the Painting department to increase total office department expenses by $7,000. Since the Painting department will bring new customers into the store, management expects sales in both the Clock and Mirror departments to increase by 8%. No changes for those departments' gross profit percents or their direct expenses are expected except for store supplies used, which will increase in proportion to sales. Required: Prepare departmental income statements that show the company's predicted results of operations for calendar-year perating (selling) departments and their combined totals. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) WILLIAMS COMPANY Forecasted Departmental Income Statements For Year Ended December 31, 2020 Clock Mirror Paintings Combined Direct expenses Total direct expenses Allocated expenses Total allocated expenses Total expenses