Exercise 22-6 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 2017. Department Advertising Square Feet 2,420 1,100 8,580 9,900 Direct Expenses Sales 20,000 22,000 Administrative Shoes 133,000 12,000 $118,800 Clothing 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 (1) direct expenses to each of the four departments, (2) the $79,000 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 be Utilities Allocation Base Percent of Allocation Base Allocated Cost Allocated Numerator Denominator % of Total Department Advertising 0 Administrative 0 0 Shoes 0 0 Clothing C Totals C Cost to be Advertising Allocation Base Percent of Allocation Base Allocated Cost Allocated Numerator Denominator % of Total Department Shoes 0 Clothing 0 0 Totals Cost to be Administrative Allocation Base Percent of Allocation Base Allocated Cost Allocated Numerator Denominator % of Total Department Shoes 0 Clothing C 0 Totals MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2017 Clothing Expense Totals Advertising Administrativ&hoes Direct expense Indirect utilities expenses 0 Total dept. exp. 0 C 0 0 Service Dept. Expenses Advertising Dept 0 Administrative Dept. S S Total expenses allocated C S C 0 C OC