Solution 2:
Total cost of Depreciation, interest and taxes = $18,000 + $27,000 + $9,000 = $54,000
Total Relative market value of floor space = (4000*$30) + (4000*$20) = $200,000
Allocation rate per dollar of floor space occupied = $54,000 / $200,000 = $0.27
Total cost of heating lighting and maintenance = $3,000 + $3,000 + $6,000 = $12,000
Total square feet occupied = 4000 + 4000= 8000
Allocation rate per square feet = $12,000 / 8000 = $1.50 per square feet
Allocation of Cost of Depreciation interest and taxes | |||
Department | Market value of floor space | Rate | Total allocation |
Linder Department | $30,000.00 | $0.27 | $8,100.00 |
Chiro's Department | $36,000.00 | $0.27 | $9,720.00 |
Allocation of Cost of heating lighting and maintenance | |||
Department | Floor space occupied | Rate | Total allocation |
Linder Department | 1000 | $1.50 | $1,500.00 |
Chiro's Department | 1800 | $1.50 | $2,700.00 |
Required information [The following information applies to the questions displayed below National Bank has several departments...
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