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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
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 Direct Expenses $15,000 22,000 118,000 19,000 Department Advertising Administrative Square Feet 1,540 700 $145,600 114,400 5,180 6,580 Shoes clothing The advertising department developed and distributed 230 advertisements during the year. Of these, 23 promoted shoes and 207 promoted clothing. Utilities expense of $66,000 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 $66,000 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 Percent of Allocation Base Utilities Allocation Base Allocated Cost Allocated Department % of Total Floor space occupied Numerator Denominator Advertising 0 Administrative 0 0 Shoes 0 0 Clothing 0 Aocateu Department Floor space occupied Numerator Denominator % of Total Advertising 0 Administrative 0 0 Shoes 0 0 Clothing 0 Totals 0 Cost to be Percent of Allocation Base Advertising Allocation Base Allocated Cost Allocated Department Numerator Number of ads Denominator % of Total Shoes 0 Clothing 0 0 Totals Cost to be Percent of Allocation Base Administrative Allocation Base Allocated Cost Allocated Department % of Total Sales Numerator Denominator Shoes 0 Clothing 0 0 Totals MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2019 Administrative Clothing Expense Totals Advertising Shoes Direct expense
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