National Bank has several departments that occupy both floors of a two-story bui
ID: 2579397 • Letter: N
Question
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.
The building has 7,000 square feet on each floor. In prior periods, the accounting manager merely divided the $112,000 occupancy cost by 14,000 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.
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.
Required: 1. Allocate occupancy costs to the Linder and Chiro departments using the current allocation method. Round cost answers to 2 decimal places.) Department Linder's Dept. Chiro's Dept. Square Footage Rate TotalExplanation / Answer
Occupancy cost = 112,000
Square feet = 14,000
Average cost per squate foot = 112,000 / 14,000 = 8
Department Square Footage Rate Total Linder's Dept. 7,000 8 56,000 Chiro's Dept. 7,000 8 56,000Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.