Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and clothingl. The table that follows shows the direct expenses
Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and clothingl. The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well a total sales for the two operating departments for the year 2017 Square Feet 1,080 Sales Department Advertising inistrative Shoes Clothing Direct Expenses $ 15,000 78,000 123,600 18,000 990 3,33e 3,600 $166,400 93,609 The advertising department developed and distributed 240 advertisements during the year of these, 72 promoted shoes and 168 promoted clothing Utilities expense of $45.000 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 $45.000 of utilities expense to the four departments on the basis of floor space occupied, 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 Allocation Base Percent of Allocation Base Numerator Denominades of Total Cost to be Alle Allocated cost Department Advertising Allocation Base P arcento Allocation Base Numeror Denominades of Cost to be Allocated Cost Allocated Allocated Cost Alocation Base Persentot Allocation Base Cout to be Allocated cost here to search Shoes Clothing Totals MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2017 Expense Totals Advertising Administrativhoes Clothing Indirectes penses Total deot 600 Sence Dept Expenses Meeting Det be here to search
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started