Required 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 amountts of occupancy costs recorded in this account for the current period follow Part 1 of 2 5 Depreciation-Building Interest-Bullding mortgage Taxes-Building and land Gas (heating) expense Lighting expense Maintenance expense S 18.000 points 27,000 8,000 2,500 3,e0e 5,see s 64,000 Total occupancy cost The building has 4,000 square feet on each floor In prior periods, the accounting manager merely divided the $64,000 occupancy cost by 8.000 square feet to find an average cost of $8 per square foot and then charged each department a buiding occupancy cost equal to this rate times the number of square feet that it occupied Diane Linder manages a first-floor department that occupies 900 square feet, and Juan Chiro manages a second-loor 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 cnace is moee valabe Thic mananer alen references a recent real actate chahe nf auerane Ineal rendal rnete fre cida 7 occupancy cost by 8,000 square feet to find an average cost of $8 per square foot and then charged each department a building occupancy cost equal to this rate times the number of square feet that it occupled Diane Linder manages a first-floor department that occupies 900 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 $40 per square foot and second-floor space worth $20 per square foot (excluding costs for heating, lighting, and maintenance) Part 2 of 2 5 2. Allocate the depreciation, interest, and taxes occupancy costs to the Linder and Chiro departments in proportion to the relative market values of the floor space. Allocate the heating, lighting, and maintenange costs to the Linder and Chiro departments in proportion to the square feet occupied (ignoring floor space market values). (Round cost answers to 2 decimal places. Round your intermediate calculations to 2 decimal places.) points Total Department Square Footage Rate Linder's Department Chiro's Department
