value: 4.00 points Macee Department Store has three departments, and it conducts advertising campaigns that benefit all departments. Advertising costs are $108,000 this year, and departmental sales for this year follow. 1 2 3 Department Sales Department$222,500 Department 418,300 Department 249,200 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 1 2 3 Total EA $ 0 0.00% $ 0 value: 4.00 points Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and clothing). During 2015, the departments had the following direct expenses and occupied the following amount of floor space. Department Direct Expenses Square Feet Advertising $ 16,000 1,800 Administrative 35,000 750 Shoes Clothing 128,000 4,500 10,000 7,950 The advertising department developed and distributed 130 advertisements during the year. Of these, 26 promoted shoes and 104 promoted clothing. The store sold $340,000 of merchandise during the year. Of this amount, $204,000 is from the shoes department, and $136,000 is from the clothing department. The utilities expense of $79,000 is an indirect expense to all departments. Complete a departmental expense allocation spreadsheet for Marathon Running Shop. The spreadsheet should assign (1) direct expenses to each of the four departments, (2) the $79,000 of utilities expense to the four departments on the basis of floor space occupied, (3) the advertising department's expenses to the two operating departments on the basis of the number of ads placed that promoted a department's products, and (4) the administrative department's expenses to the two operating departments based on the amount of sales. Utilities Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Advertising 0 Administrative 0 Shoes 0 Clothing 0 Totals 0 Advertising Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Shoes 0 Clothing 0 Totals 0 Allocation Administrative Percent of Allocation Base Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Shoes 0 Clothing 0 Totals 0 Direct expense Indirect utilities expenses Total dept. exp. Service Dept. Expenses MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2015 Expense Totals Advertising Administrative Shoes Clothing 0 0 0 0 0 0 Advertising Dept. Administrative 0 0 Dept. Total expenses $ 0 $ 0 $ 0 $ 0 $ 0 allocated 0 0