Required information [The following information applies to the questions displayed below.] National Retail has two departments, Housewares and Sporting. Indirect expenses for the period follow. $ 45,000 Rent Advertising Insurance Total 25,000 10,000 $ 80,000 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 Assets $ 56,000 44,000 $ 100,000 Department Housewares Sporting Total Square Feet 1,560 2,440 4,000 Department Housewares Sporting Required: 1. Allocate indirect expenses to the two departments using the allocation method used in prior periods. Square Feet Sales $ 340,000 160,000 $ 500,000 Rate $ $ Total 0 0
Required information [The following information applies to the questions displayed below.] National Retail has two departments, Housewares and Sporting. Indirect expenses for the period follow. $ 45,000 Rent Advertising Insurance Total 25,000 10,000 $ 80,000 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 Assets $ 56,000 44,000 $ 100,000 Department Housewares Sporting Total Square Feet 1,560 2,440 4,000 Department Housewares Sporting Required: 1. Allocate indirect expenses to the two departments using the allocation method used in prior periods. Square Feet Sales $ 340,000 160,000 $ 500,000 Rate $ $ Total 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
S2.
![Required information
[The following information applies to the questions displayed below.]
National Retail has two departments, Housewares and Sporting.
Indirect expenses for the period follow.
Rent
Advertising
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.
Department
Housewares
Sporting
Total
$ 45,000
25,000
10,000
$ 80,000
Department
Housewares
Sporting
Square Feet
1,560
2,440
4,000
Square Feet
Required:
1. Allocate indirect expenses to the two departments using the allocation method used in prior periods.
Sales
$ 340,000
160,000
$ 500,000
Rate
Value of Insured
Assets
$ 56,000
44,000
$ 100,000
$
$
Total
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F90327120-96ae-430f-aeb4-7b7c1a589d72%2F02583f01-592f-447b-a45e-297f1f28029d%2Fgens30g_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
National Retail has two departments, Housewares and Sporting.
Indirect expenses for the period follow.
Rent
Advertising
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.
Department
Housewares
Sporting
Total
$ 45,000
25,000
10,000
$ 80,000
Department
Housewares
Sporting
Square Feet
1,560
2,440
4,000
Square Feet
Required:
1. Allocate indirect expenses to the two departments using the allocation method used in prior periods.
Sales
$ 340,000
160,000
$ 500,000
Rate
Value of Insured
Assets
$ 56,000
44,000
$ 100,000
$
$
Total
0
0
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