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.

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 Square Feet Sales 770 Department Advertising Administrative Shoes Clothing Direct Expenses $ 15,000 24,000 102,000 10,000 1,320 4,620 4,290 $273,800 96,200 The advertising department developed and distributed 150 advertisements during the year. Of these, 15 promoted shoes and 135 promoted clothing. Utilities expense of $50,000 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 $50,000 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 Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Denominator % of Total Department Advertising Floor space occupied Numerator 770 770 10,000 7.70 $ 50,000 Administrative 1,320 1,320 10,000 13.20 50,000 Shoes 4,620 10,000 46.20 50,000 4,620 4,290 Clothing 4,290 10,000 32.90 50,000 Totals 11,000 110.00 $ 50,000 Advertising Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Number of ads Numerator Denominator % of Total Shoes 15 0 Clothing 135 0 Totals 150 0 Administrative Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Department Shoes 0 0 Clothing Totals 0 MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2017 Expense Totals Advertising Administrative Shoes Clothing 0 0 0 0 0 0 Direct expense Indirect utilities expenses Total dept. exp. Service Dept. Expenses Advertising Dept. Administrative Dept. 0 0 Total expenses allocated $ 0 $ 0 $ 0 $ 0 $ 0