REQUIRED: 1. Allocate occupancy costs to the Diaz and Wright departments us

REQUIRED: 1. Allocate occupancy costs to the Diaz and Wright departments us

admin / July 3, 2018

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REQUIRED:

1. Allocate occupancy costs to the Diaz and Wright departments using the current allocation method.

2. Allocate the depreciation intrest 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).

3.Which allocation method would you prefer if you were a manager of a second-floor department? Explain.

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