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 2017.

Direct Expenses $ 10,000 Sales Department Advertising Square Feet 560 36,000 105,000 Administrative 700 Shoes $296,400 2,590 Clothing 12,000 3,150 83,600 The advertising department developed and distributed 220 advertisements during the year. Of these, 66 promoted shoes and 154 promoted clothing. Utilities expense of $69,000 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 $69,000 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 Percent of Allocation Base Utilities Allocation Base Allocated Cost Numerator Denominator% of Total Department Floor space occupied $69,000 560 $ Advertising 560 7,000 8.00 5,520 700 Administrative 69,000 700 7,000 10.00 6,900 2,590 Shoes 2,590 7,000 37.00 69,000 25,530 45.00 31,050 Clothing 3,150 3,150 7,000 69,000 Totals 7,000 100.00 69,000 Cost to be Allocated Percent of Allocation Base Advertising Allocated Cost Allocation Base Numerator Denominator% of Total Number of ads Department 30.00 Shoes 66 66 220 Clothing 154 154 220 70.00 Totals 220 100.00 Cost to be Allocated Allocation Base Allocated Cost Administrative Percent of Allocation Base Numerator Denominator% of Total Department Sales $ 296,400 $380,000 Shoes $ 296,400 78.00 83,600 Clothing 380,000 22.00 83,600 100.00 Totals 380,000 MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2017 Clothing Expense Totals Advertising Administrativ&hoes Direct expense Indirect utilities expenses 0 Total dept. exp. 0 0 0 0 0 Service Dept. Expenses Advertising Dept Administrative Dept 0 $ 0 0 0 Total expenses allocated