Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check Exercise 09-6 Departmental expense allocation spreadsheet LO P2 Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and

image text in transcribed
image text in transcribed
Check Exercise 09-6 Departmental expense allocation spreadsheet LO P2 Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and clothing). The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well as total sales for the two operating departments for the year 2019. Sales Department Advertising Administrative Shoes clothing Direct Expenses $ 18,000 25,000 103,000 15,000 Square feet 1,120 1,400 7,140 4,340 $273,000 77,000 The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30 promoted clothing. Utilities expense of $64,000 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 $64,000 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. Allocation Bone Cost to be Allocated alocated Cont Percent of Allocation Base Numerator Denominator % of Total Utilities Department Advertising Administrative Shoes Clothing Totals Advertising Department Shoes 0 0 0 0 0 0 Allocation Base Gost to be Allocated Allocated cost Percent of Allocation Base Numerator Denominator of Total Check my w 0 Administrative Shoes Clothing Totals 0 0 0 Allocation de co Numerator Denominator % of Total 0 0 0 Department Shoes Clothing Totala Artelor Department Shoes Clothing Totals Allocation Base Coat to be Amated Allocated Cont Parcent of Allocation Bose Numerator Denominator % of Total 0 0 0 MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Yoar Ended December 31, 2019 Expense Totala Advertising Administrative 0 Shoes Clothing 3 0 0 0 0 0 0 Direct expense Indirect utiles expenses Total dept. exp Service Dept. Expenses Advertising Dept Administrativo Dept Total expenses allocated 0 0 $ O $ O $ 05 Os 0 Prey 2 of 9 !!! Next >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditing Theory A Systems View

Authors: Hugh Marsh, G A Swanson

1st Edition

089930608X, 978-0899306087

More Books

Students also viewed these Accounting questions

Question

Define induction and what are its objectives ?

Answered: 1 week ago

Question

Discuss the techniques of job analysis.

Answered: 1 week ago

Question

How do we do subnetting in IPv6?Explain with a suitable example.

Answered: 1 week ago

Question

Explain the guideline for job description.

Answered: 1 week ago

Question

What is job description ? State the uses of job description.

Answered: 1 week ago