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 Direct Expenses Square Feet Sales Advertising $ 11,000 770 Administrative 20,000 1,100 Shoes 132,800 5,280 $114,400 Clothing 19,000 105,600 3,850 The advertising department developed and distributed 160 advertisements during the year. Of these, 32 promoted shoes and 128 promoted clothing, Utilities expense of $75,000 is on 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 $75,000 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 Utilities Department Advertoing Administrative Shoes Clothing Totals Allocation Base Cost to be Pacount of Allocation Bo Allocated Allocated cost Floor space occupied Numerator Denominator of Total 770 770 of $ 75,000 1,100 1,100 0 75,000 0 5,200 5.280 o 75,000 0 3,850 3.850 0 75,000 11,000 0 $ 75.000 Allocation Base Parcent of Allocation Base Cost to be Allocated Cost Allocated Nurf Nur nermin af The Advertising nenarmant 22 Homework Saved HU HUVeusing Administrative Frui 1,100 0 > 10,000 75,000 75,000 75,000 5,280 0 0 1.100 5,280 3,850 11,000 Shoes Clothing Totals 3,850 0 0 $ 75,000 Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Advertising Department Shoes Clothing Totals Number of ads 32 32 Denominator % of Total 160 20.00 160 80.00 100.00 128 128 160 Administrative Allocated Cost es Department Shoes Clothing Totals Allocation Base Cost to be Percent of Allocation Base Allocated Sales Numerator Denominator % of Total $ 114.400 S 114,400 0 105,600 105,600 0 $ 220,000 0 MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2017 Expense Totals Advertising Administrative Shoes Clothing 0 0 0 0 Direct expenso Indirect utilities exponses Total dept. exp. Service Dept. Expenses Advertising Dept Administrative Dept. Total expenses allocated 0 0 $ 0 $ 0 $ 0 $ 0 $ 0