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Macee Department Store has three departments, and it conducts advertising campaigns that benefit all departments. Advertising cost are $128,000 this year, and departmental sales for this year follow. Department 499,500 333,000 How much advertising cost is allocated to each department If the allocation is based on departmental sales? Sales $277,500 1 Department Sales Advertising to Allocate Allocated Amount $ 1 2 277,500 499,500 333,000 1,110,000 % of Total 25.00% 45.00% 30.00% 100.00% 3 Total $ $ 0 Mervon Company has two operating departments: mixing and bottling. Mixing occupies 28,080 square feet. Bottling occupies 15,120 square feet. Indirect factory costs include maintenance costs of $208,000. If the maintenance costs are allocated to operating departments based on square footage occupied, determine the amount of maintenance costs allocated to each operating department. S of Total Maint. Exp. to Allocate Allocated Amount Department Mixing Botting Total Sq. Feet 28.080 15,120 43.200 0.00% $ A company purchases a 8,280-square-foot commercial building for $400,000 and spends an additional $74,000 to divide the space into two separate rental units and prepare it for rent Unit A, which has the desirable location on the corner and contains 1,080 square feet, will be rented for $2.00 per square foot. Unit B contains 7,200 square feet and will be rented for $1.20 per square foot. How much of the joint cost should be assigned to Unit B using the value basis of allocation? Market Value Jaint Cost Apportioned Cost Percent of Market Value Numerator Denominator of Mt Value Unit A Unit B Totals 0.00% Investment Center Electronics Sporting goods Sales Income $39,840,000 $2,988,000 25,200,000 2,142,000 Average Invested Assets $16,600,000 12,600,000 Exercise 24-11 Computing margin and turnover; department efficiency LO A2 Compute profit margin and investment turnover for each department which department generates the most net incom sales? Which department is most efficient at generating sales from average invested assets? Complete this question by entering your answers in the tabs below. Profit Margin Investment Turnover Compute profit margin for each department. Which department generates the most net income per dollar of sales? Profit Margin Choose Numerator: Choose Denominator Profit Margin Investment Profit Margin Center Electronics 1 Sporting Goods Which department generates the most net income per dolar of sales? Investment Center Electronics Sporting goods Sales Income $39,840,000 $2,988,000 25,200,000 2,142,000 Average Invested Assets $16,600,000 12,600,000 Exercise 24-11 Computing margin and turnover; department efficiency LO A2 Compute profit margin and investment turnover for each department. Which department generates the most net incom sales? Which department is most efficient at generating sales from average invested assets? Complete this question by entering your answers in the tabs below. Profit Margin Investment Turnover Compute Investment turnover for each department. Which department is most efficient at generating sales from average Invested assets? Investment Turnover Choose Numerator: Choose Denominator: Investment Turnover Investment Center Investment Turnover Electronics Sporting Goods Which department is most officient at generating sales from average invested assets? 1