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8.33 polnts Exercise 9-2 Departmental expense allocation-spreadsheet LO P2 Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and

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8.33 polnts Exercise 9-2 Departmental expense allocation-spreadsheet LO P2 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 Square Feet 5 11,000 20,000 132,000 19,000 770 Advertising Administrative Shoes Clothing 1,100 5,280 3.850 The advertising department developed and distributed 160 advertisements durng the year Of these. 32 promoted shoes and 128 promoted clothing The store sold $220,000 of merchandise during the year Of this amount, $114,400 is from the shoes department, and $105,600 is from the clothing department. The utilities expense of $75,000 is an indirect expense to all departments is an indirect expense to all depatments Complete a depatmental expense allocation spreadsheet for Marathon Running Shop. The spreadsheet should assign (1) direct expenses to each of the four departments, (2) the $75,000 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 on the amount of sales Utilities Allocation Base to beAllocated Cost Allocated Department Floor space occupied Numerator | Denominator % ofTotal Advertising Administrative Shoes Clothing 1.100 5.280 3,850 11.000 Totals

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