Burton Company requests assistance allocating costs and determining the profitability of its two departments: Skis and Snowboards. Shared Indirect expenses Include rent and supervisor
Burton Company requests assistance allocating costs and determining the profitability of its two departments: Skis and Snowboards. Shared Indirect expenses Include rent and supervisor salaries. Use the Tableau Dashboard, with Information from Burton's December 31 year-end reports, for our analysis. Sales & Costs of Goods Sold Number of Employees $100,000 $80,000 $60,000 $40,000 $20,000 Skis Snowboards $0 Sales Cost of Sales Goods Sold Cost of Goods Sold Square Feet Occupied Snowboards SKI SNOWBOARD Direct Expenses Skis Snowboards $7,000 $6,000 $5,000 $4,000 Skis $3,000 $2,000 Indirect Expense Allocation $1,000 Base $0 Indirect Expense Cost Rent Supervisor salaries Allocation Base $8,000 Square feet occupied $15,000 Number of employees Salaries Supplies Expense Used Salaries Supplies Expense Used View on Tableau Public Share 1. Allocate each of the Indirect expenses (rent and supervisor salaries) to the two departments: Skis and Snowboards. 2. Prepare departmental Income statements for Skis and Snowboards. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate each of the indirect expenses (rent and supervisor salaries) to the two departments: Skis and Snowboards. Rent Department Allocation Base Square feet occupied Numerator Percent of Allocation Base Denominator Cost to be Allocated Allocated Cost Percent of Total Skis Snowboards Totals Supervisor salaries Department. Allocation Base Number of employees Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator Percent of Total Skis Snowboards Totals Required 1 Required 2 Prepare departmental income statements for Skis and Snowboards. BURTON Co. Departmental Income Statements For Year Ended December 31 Advertising expense Cost of goods sold Gross profit Expenses Office expenses Rent Salaries Sales Supervisor salaries Total expenses Income (loss) Skis Snowboards Combined 0 0 0 0 0 0 $ 0 $ 0 $ 0 < Required 1 Required 2 >
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