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Required Information [The following informotion opplies to the questions clisployed below.] National Retail has two departments, Housewares and Sporting. Indirect expenses for the period follow.
Required Information [The following informotion opplies to the questions clisployed below.] National Retail has two departments, Housewares and Sporting. Indirect expenses for the period follow. The company occupies 4,000 square feet of a rented building. In prior periods, the company divided the $80,000 of indirect expenses by 4,000 square feet to find an sverege cost of $20 per square foot, and then allocated indirect expenses to each department based on the square feet it occupied. The company now wents to ollocate indirect expenses using the allocation bases shown below. Allocote indirect expenses to the two depsrtments. Rent expense is allocated bosed on square feet occupied. Advertising exper allocated bosed on total sales. Insurance expense is allocated bosed on the value of insured assets
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