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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.
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 So Sales Cost of Goods Sold Sales Cost of Goods Sold SKI SNOWBOARD Square Feet Occupied Snowboards Direct Expenses Snowboards Skis $7,000 $6,000 $5,000 $4,000 Skis $3,000 $2,000 Indirect Expense Allocation $1,000 Base $0 Indirect Expense Rent Cost Allocation Base Supervisor salaries $8,000 Square feet occupied $15,000 Number of employees Salaries Supplies Expense Used Salaries Supplies Expense Used +ableau 1. Compute gross profit for each department. 2. Allocate rent expense to each department. 1. Compute gross profit for each department. 2. Allocate rent expense to each department. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute gross profit for each department. Department Skis Snowboards Gross Profit < Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate rent expense to each department. Rent Department Skis Snowboards Totals Allocation Base Numerator Percent of Allocation Base Denominator Cost to be Allocated Allocated Cost Percent of Total 0 0 < Required 1 Required 2
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