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 transcribedimage 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 Square Feet $ 20,000 1,520 35,000 1,900 106,000 9,120 20,000 6,460 $186,000 124,000 The advertising department developed and distributed 180 advertisements during the year. Of these, 36 promoted shoes and 144 promoted clothing. Utilities expense of $72,000 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 $72,000 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 Department Numerator Denominator % of Total 0 Advertising Administrative Shoes 0 0 0 0 Clothing 0 Totals 0 Advertising Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Shoes 0 Clothing 0 Totals 0 Administrative Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Shoes 0 0 Clothing Totals 0 MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2019 Expense Totals Advertising Administrative Shoes Clothing Direct expense Indirect utilities expenses 0 Total dept. exp. 0 0 0 0 0 Service Dept. Expenses Advertising Dept. Administrative Dept. 0 0 Total expenses allocated $ 0 $ 0 $ $ 0 $ 0

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

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

Accounting And Order

Authors: Mahmoud Ezzamel

1st Edition

0415482615, 978-0415482615

More Books

Students also viewed these Accounting questions

Question

Explain the need for a critical analytical approach to studying HRM

Answered: 1 week ago