Overroad Cycle Shop has two service departments (advertising and administration) and two operating departments (cycles and clothing). During 2011, the departments had the following direct expenses and occupied the following amount of floor space. DepartmentDirect Expenses Square Feet Advertising Administrative Cycles Clothing $ 16,000 18,400 101,700 12,000 1,088 1,151 6,338 4,225 The advertising department developed and distributed 100 advertisements during the year. Of these, 75 promoted cycles and 25 promoted clothing. The store sold $300,000 of merchandise during the year. Of this amount, $230,000 is from the cycles department, and $70,000 is from the clothing department. The utilities expense of $64,000 is an indirect expense to all departments. Complete the departmental expense allocation spreadsheet for Overroad Cycle Shop. Assign (1) direct expenses to each of the four departmerits, (2) the $64,000 of utilities expense to the four departments on the basis of floor space occupied, (3) the advertising department's expenses to the two operating departments on the basis of the number of ads placed that promoted a department's products, and (4) the administrative department's expenses to the two operating departments based on the amount of sales (Leave no cells blank be certain to enter "O" wherever required. Negative amounts should be indicated by a minus sign. Round your intermediate calculations to 1 decimal place and final answers to the nearest dollar amount. Omit the "$" sign in your response. ) OVERROAD CYCLE SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2011 Allocation of Expenses to Departments Expense Account Administrative Dept Allocatiorn Cycles Advertising Dept 18400 S 5760 101700S 148100 Direct expenses 5440 31680 18,400 101,700 12,000 1,151 6,338 4,225 The advertising department developed and distributed 100 advertisements during the year. Of these, 75 promoted cycles and 25 promoted clothing. The st amount, $230,000 is from the cycles department, and $70,000 is from the clothing department. The utilities expense of $64,000 is an indirect expense to all departments. Complete the departmental expense allocation spreadsheet for Overroad Cycle St expenses to each of the four departmerits, (2) the $64,000 of utilities expense to the four departments on space occupied (3) the department's expenses to the two operating the departments on the basis of the number of ads placed that promoted a department's products, and (4) e department's expenses to the two operating departments based on the amount of sales. (Leave no cells blank be certain to enter "o" wherever required. Negative amo indicated by a minus sign. Round your intermediate calculations to 1 decimal place and final answers to the nearest dollar amount. Omit the "$" sign in your response. ) OVERROAD CYCLE SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2011 of Expenses to Departments Expense Account Balance Allocation Advertising Administrative Cycles Clothing 18400 101700S 5760 $ 148100 S 16000 12000 Direct expenses Indirect utilities expenses 21120 33120 5360 Sq. feet 64000 5440 21440 21440 31680 33380 Total dept. exp Service Dept. Expenses Advertising Dept Administrative Dept 212100 24160 Ads 16080 24160 Total exp. allocated to operating depts sL-2121001 $1 0
