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
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 2019, Sales Department Advertising Administrative Shoes Clothing Direct Expenses $14,080 21,00 84,00 20,000 Square feet 1,620 1,980 6, 120 8,280 $204,000 136.000 The advertising department developed and distributed 170 advertisements during the year. Of these, 34 promoted shoes and 136 promoted clothing. Utilities expense of $80,000 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 $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 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. Sales Department Advertising Administrative Shoes Clothing Direct Expenses $14,000 21,000 84,900 20,000 Square Feet 1,620 1,980 6,120 8,280 $204,000 136,800 The advertising department developed and distributed 170 advertisements during the year. Of these, 34 promoted shoes and 136 promoted clothing. Utilities expense of $80,000 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 $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. Cost to be Allocated Allocated Cost Percent of Allocation Base Allocation Base Utilities Numerator Denominator % of Total Department 0 0 0 Advertising Administrative 0 0 Shoes 0 Clothing 0 Totals Cost to be Allocated Allocated Cost Allocation Base Percent of Allocation Base 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 $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. Utilities Allocation Base Porcent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total 0 Department Advertising Administrative 0 0 Shoes 0 Clothing 0 Totals Cost to be Allocated Percent of Allocation Base Allocated Cost Allocation Base Advertising Numerator Denominator % of Total 0 Department Shoes Clothing 0 0 Totals Cost to be Allocated Allocated Cost Allocation Base Percent of Allocation Base Administrative Numerator Denominator % of Total Department 0 Shas Lupa UTRERT Shoes NUNTURI LUNUHI O tuua 0 Clothing 0 Totals 0 Administrative Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 Department Shoes Clothing Totals 0 0 MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended Decemb 31, 2019 Expense Totals Advertising Administrative Shoes Clothing Direct expense Indirect utilities expenses 0 0 0 0 0 0 Total dept. exp. Service Dept. Expenses Advertising Dept. Administrative Dept. O 0 0 0 $ 0 0 0 $ $ $ $ Total expenses allocated

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Accounting questions

Question

What is the equation of a straight line?

Answered: 1 week ago