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Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and clothing). During 2015, the departments had the following direct expenses and occupied the following amount of floor space.

Department	Direct Expenses	Square Feet
Advertising	$	20,000			2,420
Administrative		22,000			1,100
Shoes		133,000			8,580
Clothing		12,000			9,900

The advertising department developed and distributed 180 advertisements during the year. Of these, 18 promoted shoes and 162 promoted clothing. The store sold $270,000 of merchandise during the year. Of this amount, $118,800 is from the shoes department, and $151,200 is from the clothing department. The utilities expense of $79,000 is an indirect expense to all departments.

Complete a departmental expense allocation spreadsheet for Marathon Running Shop. The spreadsheet should assign (1) direct expenses to each of the four departments, (2) the $79,000 of utilities expense to the four departments on the basis of floor space occupied, (3) the advertising department?s expenses to the two operating departments on the basis of the number of ads placed that promoted a department?s products, and (4) the administrative department?s expenses to the two operating departments based onthe amount of sales.

Please see attachment utilities department advertising administrative shoes clothing totals allocation base advertising department shoes clothing totals allocation base administrative department shoes clothing totals allocation base expense totals direct expense indirect utilities expenses total dept. exp. service dept expenses advertising dept admin dept total expense allocated percent of allocation base numerator denominator percent of allocation base numerator denominator percent of allocation base numerator denominator cost to be allocated allocated cost % of Toal cost to be allocated allocated cost %of total cost to be allocated allocated cost % of total Marathon Running Shop Deparmental Expense Allocation Spreadsheet for year ended Dec 31 2015 advertising administrative shoes clothing