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Department Advertising Administrative Direct Expenses $ 10,eee Square Feet Sales 480 728 37,eee 96,e00 28.000 $156,408 183,600 Shoes 2,580 2,220 Clothing The advertising department developed
Department Advertising Administrative Direct Expenses $ 10,eee Square Feet Sales 480 728 37,eee 96,e00 28.000 $156,408 183,600 Shoes 2,580 2,220 Clothing The advertising department developed and distributed 200 advertisements during the year. Of these, 60 promoted shoes and 140 promoted clothing. Utilities expense of $80,000 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 $80,000 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. Cost to beAllocated Cost Allocated Percent of Allocation Base Utilities Allocation Base Numerator Denominator % of Total Department Advertising Administrative Shoes Clothing Totals Cost to be Advertising Allocation Base Percent of Allocation Base Allocated Cost Allocated Numerator Denominator% of Total Department Shoes Clothing Totals Cost to be Administrative Allocation Base Percent of Allocation Base Allocated Cost Allocated Numerator Denominator% of Total Department Shoes Clothing Totals MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2017 Expense Totals Clothing Advertising Administrativ@hoes Direct expense Indirect utilities expenses Total dept. exp. Service Dept. Expenses Advertising Dept. Administrative Dept. Total expenses allocated
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