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Please Show Work for All Answers! 1. Dunnes Stores has two service department, Advertising and Administration, and two operating departments, Hardware and Automotive. Sales, COGS,

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1. Dunnes Stores has two service department, Advertising and Administration, and two operating departments, Hardware and Automotive. Sales, COGS, and direct expenses are given below. Complete the following table, including allocation of $220,000 of indirect costs. Indirect costs a. are allocated on the basis of square footage: Advertising Department: Administration Department: 750 square feet 1,500 square feet Hardware Department: 3,000 square feet 9,750 square feet Automotive Department: Dunnes Stores Revenues and Expenses Y/E December 31, 2018 Service Departments Operating Departments Admin Totals Advertising Hardware Automotive 1,500,000 $675,000 $825,000 Sales 375,000 100,000 275,000 COGS Direct Expenses 275,000 50,000 75,000 100,000 50,000 Indirect Expenses 220.000 Totals Allocated Service Dept. Expenses Dept. Name Dept. Name Total Expenses Allocated to Operating Depts Use the table above to allocate the service department expenses to the operating departments. advertisements in each department Advertising Costs are allocated on the basis of number Hardware had 60 ads and Automotive had 90. Administrative costs are allocated on the basis of sales. Test 3-part 2 Managerial Accounting Summer 2019 Complete the following Departmental Income Statement C. Dunnes Stores Departmental Income Statement Y/E December 31, 2018 Automotive Hardware Combined Sales Cost of Goods Sold Gross Profit Operating Expenses Direct Expenses Indirect Expenses Share of Advertisi Expenses Share of Admin Expenses Total Operating Expenses Operating Income (Loss) Complete the following Income Statement showing Departmental Contribution to Overhead d. Dunnes Stores Income Statement Showing Departmental Contribution to Overhead Y/E December 31, 2018 Hardware Combined Housewares Sales Cost of Goods Sold Gross Profit Direct Expenses Departmental Contribution to Overhead Indirect Expenses Share of Advertising Expenses Share of Administrative Expenses Total Operating Expenses Operating Income (Loss) Test 3-part 2 Managerial Accounting Summer 2019

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