Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please follow eaxct chart layout Marathon Running Shop has two service departments (advertising and administration) and two operating departments (shoes and clothing During 2013, the

image text in transcribed

Please follow eaxct chart layout

Marathon Running Shop has two service departments (advertising and administration) and two operating departments (shoes and clothing During 2013, the departments had the following direct expenses and occupied the following amount of floor space Direct Expenses Square Feet Department 15,000 Advertising 840 nistrative 18,300 1.120 Shoes 101,600 7,560 Clothing 11,800 4,480 The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30 promoted clothing. The store sold $350,000 of merchandise during the year Of this amount, S280,000 is from the shoes department, and S70,000 is from the clothing department. The utilities expense of $66,000 is an indirect expense to all departments. Complete the departmental expense allocation spreadsheet for Marathon Running Shop. Assign (1) direct expenses to each of the four departments, (2) the S66,000 of utilities expense to the four departments on the basis of floor space occupied he 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 Cost to be allocated Allocated Cost tilities Denominator of Total Department Floor space occupied Numerator 640 840 14.020 599 s Advertising 66,000 4.120 1.120 14.020 799 Administrative 66,000 66,000 66,000 Totals 14020 100.00 66,000 Allocation Base Percent of Allocation Base Cost to be allocated Allocated cost dvertising Number of ads Nurnerator Denominator Department of Total Shoes 50 120 7500 Clothing 30 30 120 25.00 Totals 1 100.00 Allocation Base Percent of Allocation Base Cost to be allocated Allocated cost dministrative Sales Nurnerator Denominator Department of Total Shoes s 280.000 S 280.000 350,000 80.00 Clothing 70,000 70.000 350,000 20.00 350,000 MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2013 Expense Totals Advertising Administrative shoes clothing S 15.000 18.300 S 101,600 S 11.300 146.700 Direct expense 0 0 0 0 Indirect utilities expenses 0 0 0 0 0 Total dept. exp Service Dept. Expenses Administrative Dept. Total expenses allocated

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

From Fish Hook To Audit Tool An Autobiography

Authors: Aftab Alam Khan

1st Edition

1099497515, 978-1099497513

More Books

Students also viewed these Accounting questions

Question

5. What is a cumulative probability distribution?

Answered: 1 week ago

Question

Explain the importance of Human Resource Management

Answered: 1 week ago

Question

Discuss the scope of Human Resource Management

Answered: 1 week ago

Question

Discuss the different types of leadership

Answered: 1 week ago

Question

Write a note on Organisation manuals

Answered: 1 week ago