Question

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. $27,000 40,500 12,000 3,750 4,500 8,250 and land Gas ( cost building occupancy cost equal to this rate times the number of square feet that it occupied costs for heating, lighting, and maintenance). proportion to the square feet occupied (ignoring floor space market values). (Round cost answers to 2 decimal places. Round your to 2 decimal places.) Chapter 22 -Homework Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. 4 occupancy cost by 12,000 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 occupied. Diane Linder manages a first-floor department that occupies 1,100 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 $10 per square foot (excluding costs for heating, lighting, and maintenance). Part 2 of2 15 points 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 maintenance costs to the Linder and Chiro departments in proportion to the square feet occupied (ignoring floor space market values). (Round cost ans intermediate calculations to 2 decimal places.) o 2 decimal places. Round your 3 Answer is not complete. Rate Total 1,100 ,800 Chiro's Prev of 4 ill Next > 4

Answer 1

B3 space occupied value first floor second floor total 6,000 240,000 6,000 60,000 12,000$ 300,000 6 depreciation, interest, taxes $ 79,500 300,000 0.265 10.60 2.65 allocation base 10 cost per $ of value cost per square foot (first floor) $ cost per square foot (second floor)$ 13 14 15 16 17 18 heating, lighting and maintenance $ 16,500 12,000 1.375 allocation base cost per square feet square footage rate total linder's department chiro's department 1,100 11.98 13,178 1,800 $ 4 4.03$ 7,254 20 21

for formulas and calculations, refer to the next image -

B3 space occupied value first floor second floor total 6000 6000 SUM(C4:C5 -C4*40 -C5 10 -SUM (D4:D5 depreciation, interest, taxes allocation base cost per $ of value 27000+40500+12000 cost per square foot (first floor) 1-C10*40 cost per square foot (second floor) -C10 10 13 14 heating, lighting and maintenance 3750+4500+8250 allocation base cost per square feet -C14/C15 16 17 18 total square footage 1100 1800 rate linder's department chiro's department ROUND C11+C16,2) C19*D19 ROUND(C12+C16,2) -C20 D20 20 21