National Retail has two departments, Housewares and Sporting. Indirect expenses for the period follow. $ 45,000 25,000 Rent Advertising 10,000 $ 80,000 Insurance Total The company occupies 4,000 square feet of a rented building. In prior periods, 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 occupied. The company now wants to allocate indirect expenses using the allocation bases shown below. Value of Insured Square Feet 1,560 2,440 Assets $ 56,000 44,000 Sales Department Housewares $ 340,000 160,000 Sporting 000 S 500 000 S 100 000 Mete1

National Retail has two departments, Housewares and Sporting. Indirect expenses for the period follow. $ 45,000 25,000 Rent Advertising 10,000 $ 80,000 Insurance Total The company occupies 4,000 square feet of a rented building. In prior periods, 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 occupied. The company now wants to allocate indirect expenses using the allocation bases shown below. Value of Insured Square Feet 1,560 2,440 Assets $ 56,000 44,000 Sales Department Housewares $ 340,000 160,000 Sporting 000 S 500 000 S 100 000 Mete1

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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