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National Bonk has several deportments that occupy both floors of a two-story building. The deportmental accounting system has a single occount, Building Occupancy Cost, in its ledger. The types and amounts of occupancy costs recorded in this account for the current period follow. Depreciation-Building Interest-Building mortgage Toxes-Building and land Gas (heating) expense Lighting expense Maintenance expense S 13,500 20,250 6,000 1875 2,250 4,125 Total occupancy cost $ 48,000 The building has 3,000 square feet on each floor. In prior periods, the accounting manager merely divided the $48,000 occupancy cost by 6,000 square feet to find an average cost of $8 per squere 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 o second-floor department that occupies 1700 square feet of floor space. In discussing the deportmental reports, the second-floor manager questions whether using the same rate per square foot for all departments makes sense becouse the first-floor spoce is more valuable. This manager also references a recent real estate study of average local rental costs for similer space that shows first-floor space worth $40 per square foot and second-floor space orth $20 per square foot (excluding costs for heating, lighting, and maintenance)

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