Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are$132,000. Sales for its operating departments follow.Department123Sales$ 245,000450,800284,200How much advertising cost is allocated to each operating department if the allocation is based on departmental sales?Note: Do not round your intermediate calculations.DepartmentSalesPercent of TotalCostAllocated1$ 245,00025.00 %$2450,80046.00%3284,20029.00%Total$ 980,000100.00%

First, we need to calculate the total sales of all departments. This is done by adding up the sales…

Answered: Macee Store has three operating…

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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A retail store has three departments, S, T, and U, and pays for general advertising that benefits all departments. Advertising expense totaled $41,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department T based on departmental sales. (Do not round your intermediate calculations.) Department Sales $ $ 137,000 T215,050 U 160, 450 Total $ 512,500
Marsden Company has three departments occupying the following amount of floor space: How much store rent should be allocated to Department 3 if total rent is equal to$102,000? Note: Do not round intermediate calculations. Mutple Choice$49982$27000$20,548None of these snswen are correct.
Marsden Company has three departments occupying the following amount of floor space: 20,000 square feet 10,500 square feet 30,000 square feet Department 1 Department 2 Department 3 How much store rent should be allocated to Department 3 if total rent is equal to $94,000? Note: Do not round Intermediate calculations. Multiple Choice $30,000 $46.612 $16,314 None of the answers are correct.
Pepper Depanment store aliocates ns service department espenses to s various operating sales) departments The folowing dats is avaitable for ts service departments Expense Dasts for allecation ADunt Rent Square feet of flnor space $47,000 47,000 62, 00 Advertising Amount of dollar sales Adainistrative Number of enployees The following information s aveitable for mu three opeating tuale departments Number of Department Square Feet 5,400 8, 100 13,500 Dollar Seles $ 302,000 $ 453, 00 S 755, 000 enployees 15 Totals 27,000 $3,510,000 What as the total expense allocated to Deparnment B Mutiple Choice $32.000 $42065 O s400 $42500 $40.000
ssignment/takeAssignmentMain.do?invoker%3D&takeAssignmentSessionLocator=&inprogress=false E Calculator Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019, they generated $722,000 in service revenue. Their total cost (fixed and variable) per client was $2,400 and they served 105 clients during the year. If operating expenses for the year were $302,000 what was their net income? Park and West, LLC Income Statement For Year Ending 2019 Previous Next Submit Test for Grading Email Instructor All work saved. 5:19 PM 10/2/2020
1. Using the data below for Ace Guitar Company: Region A Region B Sales $571,500 $698,500 Cost of goods sold 217,200 265,400 Selling expenses 137,200 167,600 Service department expenses Purchasing $213,400 Payroll accounting 142,200 Allocate service department expenses proportionally to the sales of each region, determine the divisional income from operations for the Regions A and B. For interim calculations, round the percentages to one decimal place. Region A $ Region B $
M Department Store has 5 departments- M1, M2, M3, M4, and M5. Department M5 is being evaluated using the data below for the store. Dept, M5 P500,000 300,000 P200,000 P200,000 50,000 50,000 Р300,000 P(100,000) All Others Total Sales P4,500,000 2,200,000 P2,300,000 P800,000 450,000 450,000 P1,700,000 Р600,000 P5,000,000 2,500,000 P2,500,000 P1,000,000 500,000 500,000 P2,000,000 P500,000 Cost of Sales Gross Profit Rent and services Direct salaries Advertising allocation Total expenses Net income Rent and services is a corporate committed fixed expense and is allocated evenly to the five departments. Advertising will not change regardless of the decision, and is allocated using sales revenue. M Department Store is evaluating Department M5's future. REQUIRED: 1. Comment on the following statements about Department M5: a. It is earning P100,000 in variable CM for M Department Store. b. It is earning P150,000 in direct CM for M Department Store. c. It is a P100,000 drain on the profitability…
Marsden Company has three departments occupying the following amount of floor space: Department 1 16,000 square feet Department 2 10,100 square feet Department 3 26,000 square feet How much store rent should be allocated to Department 3 If total rent is equal to $98,000? Note: Do not round Intermediate calculations. Multiple Choice $26,000 $48,906 $18,998 None of the answers are correct.
Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $60,100 and for Purchasing is $43,000. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders. Purchase Orders 984 648 768 Department Вooks Sales $ 163,800 97,500 128,700 $ 390,000 Magazines Newspapers Total 2,400 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information. Cost to be Allocated Office Allocation Base Percent of Allocation Base Allocated Cost Department Numerator Denominator % of Total Вooks Magazines Newspapers Totals Purchasing Cost to be Allocated Allocation Base Percent of Allocation Base Allocated Cost Department Numerator Denominator % of Total Вooks Magazines Newspapers Totals
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Advertising department expenses of $57,200 and purchasing department expenses of $45,800 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Department Sales Purchase Orders Books $ 167,200 1,290 Magazines 76,000 900 Newspapers 136,800 810 Total $ 380,000 3,000 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.
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