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The following information applies to the questions displayed below] City Bank has several departments that occupy both floors of a two-story building The departmental accounting

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The following information applies to the questions displayed below] City 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 Depreclation-Building Interest-Building mortgage Taxes-Building and land Gas (heating) expense Lighting expense Maintenance expense S 27000 40,500 12.000 3,750 4.500 8,250 Total occupancy cost $ 96,000 The building has 6,000 square feet on each floor In prior pertods, the accounting manager merely divided the $96,000 occupancy cost by 12,000 square feet to find an average cost of $8 per square foot and then charged each department a bulding occupancy cost equal to this rate tmes the number of square feet that it occupied Laura Diaz manages a first-floor department that occuples 1000 square feet, and Lauren Wright manages a second-floor department that occuples 1,900 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 $20 per square foot (excluding costs for heating. lighting, and maintenancel References Check my work value 15.00 points 2. Allocate the depreciation, interest, and taxes occupancy costs to the Diaz and Wright departments in proportion to the relative market values of the floor space. Allocate the heating, lighting, and maintenance costs to the Diaz and Wright departments in proportion to the square feet occupied ignoring floor space market values) (Round your intermediate percentages of cost allocati nearest whole percent. Round your cost per Sq. ft to 2 decimal places and round intermediate dollar amounts and final answers to the nearest whole number. Omit the "$sign in your response.) Departmenttotal Diaz's DeptS Wright's Dept References Learning Objective: 21-C3 Appendix 21A-Explain transfe pricing and methiods to set transter prices Worksheet Learning Objective 21-P1 Assign overhead costs using twostage cost allocation Difficulty: 3 Hard Check my work

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