Macee Department Store has three departments, and it conducts advertising campaigns that benefit all departments. Advertising costs are $128,000 this year, and departmental sales for this year follow, Department 1 2 3 Sales $277,500 494,500 333,000 How much advertising cost is allocated to each department if the allocation is based on departmental sales? Department Answer is not complete. Advertising Sales % of Allocated to Total Amount Allocate $ 277,500 25.00% 499,500 50.00% 333,000 25.00% 3 $ 1.110,000 100.00% 0 1 2 3 Total Mervon Company has two operating departments; mixing and bottling. Mixing occuples 28,080 square feet. Bottling occuples 15,120 square feet. Indirect factory costs include maintenance costs of $208,000. If the maintenance costs are allocated to operating departments based on square footage occupied, determine the amount of maintenance costs allocated to each operating department Department Sq. Feet % of Total Maint. Exp.to Allocate Allocated Amount Mixing Bottling Total 28,080 15.120 43.200 0.00% $ A company purchases a 8,280-square-foot commercial building for $400,000 and spends an additional $74,000 to divide the space into two separate rental units and prepare it for rent Unit A, which has the desirable location on the corner and contains 1,080 square feet, will be rented for $2.00 per square foot. Unit 8 contains 7.200 square feet and will be rented for $1.20 per square foot. How much of the joint cost should be assigned to Unit B using the value basis of allocation? Market Value Joint Cost Apportioned Cost Percent of Market value Numerator Denominator % of Mkt Value Unit A Unit B 0.00% Totals Electric $83, 600 47,550 36,050 WHOLESALE GUITARS Departmental Income Statements For Year Ended December 31, 2017 Acoustic Sales $ 103, 400 Cost of goods sold 44,075 Gross profit 59,325 Operating expenses Advertising expense 4,975 Depreciation expense-equipment 10,070 Salaries expense 19,900 Supplies expense 2,000 Rent expense 7,095 Utilities expense 3,005 Total operating expenses 47,045 Net income (lons) $ 12,280 4,330 8,590 17,800 1,800 6,010 2,560 41,090 $(5,040) 1. Prepare a departmental contribution report that shows each department's contribution to overhead. WHOLESALE GUITARS Income Statement Showing Departmental Contribution to Overhead For Year Ended December 31, 2017 Acoustic Dept. Electric Dept. Combined Sales Cost of goods sold (Gross profit Direct expenses Depreciation expense equipment WHOLESALE GUITARS Income Statement Showing Departmental Contribution to Overhead For Year Ended December 31, 2017 Acoustic Dept. Electric Dept. Combined Sales Cost of goods sold Gross profit Direct expenses Depreciation expense-equipment Salaries expense 0 0 0 Supplies expense Total direct expenses Departmental contributions to overhead Indirect expenses Advertising expense $ 0 $ 0 $ 0 Rent expense Utilities expense Total indirect expenses 0 Net income $ 0 Advertising department expenses of $71,000 and purchasing department expenses of $78,900 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Department Book Magazines Newspapers Total Sales $ 201,600 92,400 126.000 $420,000 Purchase Orders 1.225 725 550 2,500 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Complete this question by entering your answers in the tabs below. Allocation of Alloc of Serv Exp Dept Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments Advertising Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Magazines 0 0 n Allocation of Alloc of Serv Exp Dept Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the operating departments. Advertising Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Magazines Newspapers Totals 0 0 0 0 Allocation Base Cost to be Allocated Allocated cost Porcent of Allocation Base Numerator Denominator % of Total 0 Purchasing Department Books Magazines Newspapers Totals 0 0 Allereer om Alloc of Serv Dept> Department Books Magazines Newspapers Total Sales $201,600 92.400 126,000 $420,000 Purchase Orders 1,225 725 550 2,500 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the the operating departments. Complete this question by entering your answers in the tabs below. Allocation of Alloc of Serv Exp Dept Complete the spreadsheet by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. (Amounts to be deducted should be indicated with minus sign.) COZY BOOKSTORE Departmental Expense Allocation Spreadsheet Expense Totals Advertising Purchasing Books Magazines Newspapers Total department expenses $ 789,000 $ 71,000 $ 78,900 $ 213,000 $ 157,800 $ 268,300 Service Dept. Expenses Advertising Dept Purchasing Dept. Total expenses allocated $ 789,000 $ 71,000 $ 78,900 $213,000 $ 157,800 $ 268,300