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Marathon Running Shop.... Need help doing this. Please show calculations Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes
Marathon Running Shop.... Need help doing this. Please show calculations
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 Square Feet Sales Department Advertising Administrative Shoes Clothing s 20,000 22,000 133,000 12,000 2,420 1,100 8,580 9,900 $118,800 151,200 The advertising department developed and distributed 180 advertisements during the year. Of these, 18 promoted shoes and 162 promoted clothing. Utilities expense of $79,000 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 $79,000 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 Utilities Allocation Base Percent of Allocation Base Allocated Cost Department : Numerator | Denominator | % of Total Advertising Administrative Shoes Clothing Totals Advertising Department Cost to be Allocated Allocation Base Percent of Allocation Base Allocated Cost Numerator Denominator | % of Total Shoes Clothing Totals Cost to be Allocated Allocated Cost Administrative Allocation Base Percent of Allocation Base Department Shoes Clothing Numerator Denominator % of Total Totals MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2017 Expense Totals Advertising Administrative Shoes Clothing Direct expense Indirect utilities expenses Total dept. exp. Service Dept. Expenses Advertising Dept. Administrative Dept. Total expenses allocated Prev 1 of 1 NextStep by Step Solution
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