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. Square Feet 1,126 1,400 7,140 4, 346 Direct Expenses $ 18,000 25, 000 103,000 15,000 Sales Department Advertising Administrative Shoes $273,000 77,000 clothing 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. amount OT sales Cost to be Allocated Allocated Cost Percent of Allocation Base Utilities Allocation Base Floor space occupied Denominator % of Total Department Numerator 1,120 14,000 640,000 5,120 Advertising 8.00 S S 1,400 14,000 Administrative 10.00 640,000 64,000 Shoes 640,000 0 0 Clothing 640,000 0 Totals 0 640,000 Cost to be Allocated Allocated Cost Advertising Allocation Base Percent of Allocation Base Department Number of ads Denominator % of Total Numerator 17,340 5,780 23,120 Shoes 90 75.00 S 120 30 Clothing 25.00 23,120 120 Totals 100.00 S 23,120 Percent of Allocation Base Cost to be Allocated Allocated Cost Administrative Allocation Base Sales Denominator % of Total Department Numerator 273,000 S 350,000 Shoes 31,400 78.00 77,000 Clothing 350,000 22.00 31,400 100.00 S 31,400 Totals MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2019 Advertising Administrative Shoes Clothing Expense Totals 18,000 25,000 15,000 Direct expense S S S S 103,000 161,000 S Indirect utilities expenses 69,120 64,000 5,120 Total dept. exp 230,120 89,000 23,120 0 0 Service Dept. Expenses Advertising Dept. 0 Administrative Dept. 230,120 S 89,000 Total expenses allocated S S S 23,120 0