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 Direct Expenses Square Feet Sales Advertising $ 10,000 Administrative 32,000 Shoes 134,000 $192,000 Clothing 19,000 3,880 48,000 770 840 2,310 The advertising department developed and distributed 240 advertisements during the year of these, 48 promoted shoes and 192 promoted clothing Utilities expense of $57,000 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 $57,000 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 Numerator Denominator % of Total Cost to be Allocated Allocated cost Department 0 Advertising Administrative 0 0 0 Shoes 0 Saved 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 $57,000 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 promoted a department's products, and (4) the administrative department's expenses to the two operating departments based on amount of sales Cost to be Utilities Allocation Base Allocated Allocated Cost 56 Percent of Allocation Base Numerator Denominator % of Total 0 0 0 Department Advertising Administrative Shoes Clothing Totals 0 0 0 Advertising Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total 0 Department Shoes Clothing Totals 0 0 Administrative Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Help Save & EX INUTI UTOROK 20 UP TO U Shoes Clothing Totals 0 0 0 Administrative Allocation Baso Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Department Shoes Clothing Totals 0 0 0 MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2019 Expense Totals Advertising Administrative Shoes Clothing 0 0 0 0 0 Dired expense Indirect utilities expenses Totul dept exp Service Dept Expenses Advertising Dept Administrative Dept Total expenses allocated 0 0 5 05 05 05 05 0
