Super Grocery Store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments:

Expense	Basis for allocation	Amount
Administrative	Square feet of floor space	$ 20,000
Advertising	Amount of dollar sales	$ 13,000

The following information is available for its three operating (sales) departments:

Department	Square Feet	Dollar Sales
Produce	1,050	$ 85,000
Bakery	700	35,000
Meats	1,750	47,000
Totals	3,500	$ 167,000

What is the total administrative expense allocated to the Meats department?

Multiple Choice

• $4,820.

• $13,500.

• $10,000.

• $1,750.

• $3,500.

Marcus Company has two service departments: Office and Purchasing. Total expenses for the Office is $66,000 and for Purchasing is $86,000. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders.

Department	Sales	Purchase Orders
Books	$ 1,089,000	1,806
Magazines	435,600	1,260
Newspapers	455,400	1,134
Totals	$ 1,980,000	4,200

Expenses allocated from the Purchasing department to the companys Newspaper department are:

Multiple Choice

• $25,800.

• $17,820.

• $36,980.

• $23,220.

• $41,040.

Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 210 employees and occupies 68,400 square feet; Painting has 90 employees and occupies 45,600 square feet. The company has indirect expenses that consist of administrative expenses of $97,000 and maintenance expenses of $117,000. Administrative expenses are allocated based on the number of workers in each department and maintenance is allocated based on square footage. The amount of administration expenses that should be allocated to the Assembly Department for the current period is:

Multiple Choice

• $70,200.

• $138,100.

• $139,400.

• $140,400.

• $67,900.