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Natlonal Retall has two departments, Housewares and Sporting.

Indirect expenses for the period follow.

The company occuples $4,000$ square feet of a rented building. In prior perlods, the company divided the $$80,000$ of

Indirect expenses by $4,000$ square feet to find an average cost of $$20$ per square foot, and then allocated indirect

expenses to each department based on the square feet it occupled.

The company now warts to allocate indirect expenses using the allocation bases shown below.

$2$ Allocate indirect expenses to the two departments. Rent expense is allocated based on square feet occupled. Advertising expense

is allocated based on total sales. Insurance expense is allocated based on the value of Insured assets.