Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 $ 10,000 480 Administrative 37.000 720 Shoes 96,000 2,580 $156,400 Clothing 20,000 2,220 183,600 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 Morothon 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 Allocation Base Cost to be Allocated Peccent Allocation Base Numerator Denominator% of Total Allocatod Cost Utilities Department Advertising Administrative Shoes Clothing Totals Advertising Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator of Total Department Shoes Administrative Allocation Base Cost to be Allocated Allocated Cost Shoes Clothing Totals Advertising Department Shoes Clothing Totals Percent of Allocation Base Numerator Denominator% of Total Administrative Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator% of Total Department Shoes Clothing Totals MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2017 Expense Totals Advertising Administrativhoos Clothing Direct expense Indirect utilities expenses Total dept. exp. Service Dept. Expenses Advertising Dept Administrative Dept. Total expenses allocated

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

12th Edition

978-0073526706, 9780073526706

More Books

Students also viewed these Accounting questions

Question

Evaluate the usability of instructional documents

Answered: 1 week ago