Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66527d9161780_12866527d90cc2a1.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66527d9225ce0_12966527d919d193.jpg)
Transcribed Image Text:
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 2019. Department Advertising Administrative Shoes Clothing Direct Expenses $ 18,000 25,000 103,000 15,000 Square Feet Sales 1,120 1,400 7,140 4,340 $273,000 77,000 The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30 promoted clothing. Utilities expense of $64,000 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 $64,000 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 Advertising Administrative Shoes Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Clothing Totals Advertising Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Shoes Clothing Totals Administrative Allocation Base Department Numerator Percent of Allocation Base Denominator Cost to be Allocated Allocated Cost % of Total Shoes Clothing Totals MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet Expense Totals Advertising For Year Ended December 31, 2019 Administrative Shoes Clothing Direct expense Indirect utilities expenses Total dept. exp. Service Dept. Expenses Advertising Dept. Administrative Dept. 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 2019. Department Advertising Administrative Shoes Clothing Direct Expenses $ 18,000 25,000 103,000 15,000 Square Feet Sales 1,120 1,400 7,140 4,340 $273,000 77,000 The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30 promoted clothing. Utilities expense of $64,000 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 $64,000 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 Advertising Administrative Shoes Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Clothing Totals Advertising Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Shoes Clothing Totals Administrative Allocation Base Department Numerator Percent of Allocation Base Denominator Cost to be Allocated Allocated Cost % of Total Shoes Clothing Totals MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet Expense Totals Advertising For Year Ended December 31, 2019 Administrative Shoes Clothing Direct expense Indirect utilities expenses Total dept. exp. Service Dept. Expenses Advertising Dept. Administrative Dept.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Why must costs be classified into different categories for ABC? What is the basis for these categories?
-
Assume that you work for a firm that is about to launch a new product line of digital cameras and that you are responsible for devising a strategy to promote and sell the product line through the...
-
Draw a sampling distribution of an unbiased estimator. LO-1
-
A television network has been receiving low ratings for its programs. Currently, management is considering two alternatives for the Monday night 8:00 P.M.9:00 P.M. time slot: a western with a...
-
Please show work (answer of paid-in capital excess of par-common stock is not 1188 and paid-in capital excess of par-preferred stock is not 1635) Transcribed image text: Coronado Corporation's...
-
What key performance indicators (KPIs) will we use to measure the success of this agenda, and how often will we review and report on these metrics?
-
Zhou Karate School began business on June 1. Transactions for June were as follows: 1 Po Zhou contributed \(\$ 10,000\) of his personal funds in exchange for common stock to begin the business. 2...
-
Harper Service Co. experienced the following transactions for 2011, its first year of operations: 1. Provided \(\$ 98,000\) of services on account. 2. Collected \(\$ 76,000\) cash from accounts...
-
The accounts receivable balance for Get-N-Shape Spa at December 31,2011 , was \(\$ 80,000\). Also on that date, the balance in the Allowance for Doubtful Accounts was \(\$ 3,000\). During 2012, \(\$...
-
Mann Enterprises loaned \(\$ 12,000\) to Snell Co. on June 1, 2011, for one year at 5 percent interest. Required a. Record these general journal entries for Mann Enterprises: (1) The loan to Snell...
-
The following post-closing trial balance was drawn from the accounts of Millers Metal Co. (MMC) as of December 31, 2011. Transactions for 2012 1. MMC acquired an additional \(\$ 4,000\) cash from the...
-
Question 11 Provide an appropriate response. Calculate the mean for the discrete probability distribution shown here. X 2 5 9 10 P(x) 0.09 0.07 0.22 0.62 6.5 O 26 O 2.1775 8.71 Moving to another...
-
What impact does knowledge of evidence-based practice have on the overall healthcare climate of the organization?
-
List related executive core competenciesfor example, AONE, Quality and Safety Education for Nurses (QSEN), and Interprofessional Education Collaborative (IPEC) that this NA would need to bring about...
-
Reflect on the key challenges of this scenario and develop a plan incorporating the structure, process, and outcomes necessary to address the diminished quality and safety.
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App