QS 24-5 Allocating costs to departments LO P2 Macee Department Store has three departments, and it conducts advertising campaigns that benefit all departments. Advertising costs are $114,000 this year, and departmental sales for this year follow. Department Sales $157,500 308,700 163,800 WN How much advertising cost is allocated to each department if the allocation is based on departmental sales? Department Sales % of Total Advertising to Allocate Allocated Amount 2 Total QS 24-7 Allocating costs to departments LO P2 Mervon Company has two operating departments: mixing and bottling. Mixing occupies 23,320 square feet. Bottling occupies 19,080 square feet. Indirect factory costs include maintenance costs of $216,000. 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. Department Sq. Feet % of Total Maint. Exp. to Allocate Allocated Amount Mixing Bottling Total QS 24-19C Joint cost allocation LO C3 A company purchases a 11,760-square-foot commercial building for $385,000 and spends an additional $90,000 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 3,360 square feet, will be rented for $1.50 per square foot. Unit B contains 8,400 square feet and will be rented for $0.90 per square foot. How much of the joint cost should be assigned to Unit B using the value basis of allocation? Market Value Percent of Market Value Joint Cost Apportioned Cost Numerator Denominator % of Mkt Value Unit A Unit B Totals