depa (advertising and ung departme clothing). The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well as cotal sales for the two operating departments for the year 2019. Sales Department Advertising Administrative Shoes Clothing Direct Expenses $ 18,000 25,000 103,000 15,000 Square Feet 1, 120 1,400 7,140 4,340 $273,000 77,000 The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30 promoted clothing. Utilities expense of $64,000 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 $64,000 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.
depa (advertising and ung departme clothing). The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well as cotal sales for the two operating departments for the year 2019. Sales Department Advertising Administrative Shoes Clothing Direct Expenses $ 18,000 25,000 103,000 15,000 Square Feet 1, 120 1,400 7,140 4,340 $273,000 77,000 The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30 promoted clothing. Utilities expense of $64,000 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 $64,000 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.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
Related questions
Question
Please Do not give solution in image format otherwise give down vote
![Utilities
Department
Advertising
Administrative
Shoes
Clothing
Totals
Advertising
Department
Shoes
Clothing
Totals
Administrative
Department
Shoes
Clothing
Totals
Direct expense
Indirect utilities expenses
Total dept. exp.
Service Dept. Expenses
Advertising Dept.
Administrative Dept.
Allocation Base
Allocation Base
Allocation Base
Percent of Allocation Base
Denominator
Expense Totals
Numerator
Percent of Allocation Base
Denominator
Numerator
Percent of Allocation Base
Denominator
Numerator
MARATHON RUNNING SHOP
Departmental Expense Allocation Spreadsheet
For Year Ended December 31, 2019
Advertising
Administrative
% of Total
% of Total
% of Total
Shoes
Cost to be Allocated Allocated Cost
Cost to be Allocated Allocated Cost
Cost to be Allocated Allocated Cost
Clothing](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe909139c-4e08-4302-ac1f-b75bbd6b9a06%2F7c72e5a8-ed1a-47b2-bbfb-a748888d48b9%2Fm7vgris_processed.png&w=3840&q=75)
Transcribed Image Text:Utilities
Department
Advertising
Administrative
Shoes
Clothing
Totals
Advertising
Department
Shoes
Clothing
Totals
Administrative
Department
Shoes
Clothing
Totals
Direct expense
Indirect utilities expenses
Total dept. exp.
Service Dept. Expenses
Advertising Dept.
Administrative Dept.
Allocation Base
Allocation Base
Allocation Base
Percent of Allocation Base
Denominator
Expense Totals
Numerator
Percent of Allocation Base
Denominator
Numerator
Percent of Allocation Base
Denominator
Numerator
MARATHON RUNNING SHOP
Departmental Expense Allocation Spreadsheet
For Year Ended December 31, 2019
Advertising
Administrative
% of Total
% of Total
% of Total
Shoes
Cost to be Allocated Allocated Cost
Cost to be Allocated Allocated Cost
Cost to be Allocated Allocated Cost
Clothing
![Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and
clothing). The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well as
total sales for the two operating departments for the year 2019.
Sales
Department
Advertising
Administrative
Shoes
Clothing
Direct Expenses Square Feet
$ 18,000
25,000
103,000
15,000
1,120
1,400
7,140
4,340
$273,000
77,000
The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30
promoted clothing. Utilities expense of $64,000 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 $64,000 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe909139c-4e08-4302-ac1f-b75bbd6b9a06%2F7c72e5a8-ed1a-47b2-bbfb-a748888d48b9%2Frvij1ra_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and
clothing). The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well as
total sales for the two operating departments for the year 2019.
Sales
Department
Advertising
Administrative
Shoes
Clothing
Direct Expenses Square Feet
$ 18,000
25,000
103,000
15,000
1,120
1,400
7,140
4,340
$273,000
77,000
The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30
promoted clothing. Utilities expense of $64,000 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 $64,000 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.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College