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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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.
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.
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