Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not in Exercise 24-6 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. Department Direct Expenses Square Feet Sales Advertising $ 20,000 2,420 Administrative 22,000 1,100 Shoes 133,000 8,580 $118,300 Clothing 12,000 9,900 151,200 The advertising department developed and distributed 180 advertisements during the year. Of these, 18 promoted shoes and 162 promoted clothing. 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 direct expenses to each of the four departments, (2) the 579,000 of utilities expense to the four departments on the boss of foor spoce occupied, (3) the advertising department's expenses to the two operating departments on the basis of the number of ads placed that promoted o department's products, and (4) the administrative department's expenses to the two operating departments based on the omount of soles Answer is complete but not entirely correct. Cost to 65F ORE e to search hp Utilities Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Floor space Numerator Denominator Department Advertising Administrative 2,420 $ Occupied 2,420 1,100 8,580 9.900 22.000 11,000 11,000 11.000 1,100 8,580 9.900 Shoes Clothing Totals % of Total 22.00 10.00 78.00 (10.00) $ 79,000 79,000 79,000 79,000 17,380 7.900 61,620 (7,900) 79.000 11,000 $ Advertising Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Number of ads Numerator 18 18 Department Shoes Clothing Totals Denominator 180 180 9 of Total 10.00 90.00 162 162 180 100.00 $ 37,380S 3,738 X 37,380 33.6428 15 37 380 Cost to Allocated be Cost Allocated Administrative Allocation Base Percent of Allocation Base Sales Department Shoes Clothing 96 of Total 44.00 56.00 Denominator Is 270,000 270,000 Numerator S 118.800 151 200 118,800 151,200 IS $ 29,90035 29.900 13.156 16,7443 O 40 to search Gp Totals 37,380 Administrative Allocated Cost Department Shoes Clothing Totals 13,156 16,744 29,900 $ 180 100 00 Allocation Base Cost to Percent of Allocation Base be Allocated Sales Numerator % of Denominator Total $ 118,800 118,800 $ 270,000 44.00 $ 29,900 151,200 151,200 270,000 56.00 29,900 is 270,000 100.00 MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2019 Expense Totals Advertising Administrative Shoes Clothing S 187,000 $ 20,000 S 22,000 $133.000 $ 12,000 94,800 17,380 7.900 61,620 7,900 281,800 37,380 29.900 194,620 19,900 Direct expense Indirect utilities expenses Total dept. exp Service Dept. Expenses Advertising Dept Administrative Dept. Total expenses allocated (16,894) 3.7383 33.6423 13.156% 16,744 (50,386 (20,486) $232.000 $ 49,800 S $ 20,486 281,800 CA 5 of 10 1
