please answer ALL QUESTIONS
Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report only includes those costs that the particular department manager can control: raw materials, wages, supplies used, and equipment depreciation. Raw materials Employee wages Dept. manager salary Supplies used Depreciation Equip. Utilities Rent Totale Snowmobile $19.810 10,700 4.600 3,630 6,300 390 6,000 $51,430 Budget MTY $27.800 20,800 5,500 1,200 12.800 Combined $ 47.610 31,500 10,100 4,830 19,100 960 12,600 $126,700 Snowmobile $19.720 10.990 4.700 3,470 6,300 360 5,600 $51,140 Actual TV Combined $29.120 48.840 21.54032,530 4,700 9.400 1.220 4.690 12,800 19,100 530 890 6,600 12,200 $76,510 $127,650 570 6,600 $75,270 Prepare a responsibility accounting report for the snowmobile department. (Under budget amounts should be indicated by a minus sign.) Over (Under) Budget Responsibility Accounting Performance Report Dept. Manager, Snowmobile Department For the Year Budgeted Actual Amount Amount Controllable Costs Raw materials Employee wages Supplies used Depreciation-Equipment Totals $ 0 $ $ 0 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 Sales Department Advertising Administrative Shoes clothing Direct Expenses $ 16,000 29,000 110,000 14,000 Square Feet 900 500 3.400 5,200 $139,200 100,800 The advertising department developed and distributed 120 advertisements during the year. Of these, 12 promoted shoes and 108 promoted clothing. Utilities expense of $71,000 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 $71,000 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 Us Allocation Base Percent of Allocation Base Allocated Cost Allocated Numerator Denominator % of Total Department Advertising Administrative Shoes Clothing Totals Advertising Allocation Base Cost to be Percent of Allocation Base det Allocated Allocated Cost Department Numerator Denominator of Total Shoes Clothing Totals lotals Advertising Allocation Base Percent of Allocation Base Cost to be Allocated Cost Allocated Department Numerator Denominator % of Total Shoes Clothing Totals Administrative Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Shoes Clothing Totals MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2019 Expense Totals Advertising Administrative Shoes Clothing Direct expense Indirect utilities expenses Total dept. exp. Service Dept. Expenses Advertising Dept Administrative Dept. Total expenses allocated 0S 0S 0
