Connect Access Card For Fundamental Accounting Principles
24th Edition
ISBN: 9781260158526
Author: John J Wild
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 24, Problem 6E
Exercise 24-6
Departmental expense allocation spreadsheet
P2
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 2017.
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. Prepare 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. Provide supporting computations for the expense allocations.
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Required information
The Ferre Publishing Company has three service departments and two operating departments. Selected data from a
recent period on the five departments follow:
Costs
Number of employees
Square feet of space occupied
Hours of press time
Departmental costs before allocations
Allocations:
Service Departments
Administration Janitorial Maintenance
$ 144,200 $ 108,150 $ 49,440
140
20,000
Administration costs
Janitorial costs
Maintenance costs
Total costs after allocations
60
15,000
Administration
$
The company allocates service department costs by the step-down method in the following order: Administration (number of
employees), Janitorial (space occupied), and Maintenance (hours of press time).
Service Departments
Janitorial
$ 144,200 $ 108,150 $
35
10,000
Required:
Using the step-down method, allocate the service department costs to the operating departments. (Please enter allocations from a
department as negative and allocations to a department as positive. The line…
Service Department Allocations
The centralized employee travel department of Bourgeois Company has costs of $405,600. The department has serviced a total of 3,900 travel reservations
for the period. The South Division has made 2,260 reservations during the period, and the West Division has made 1,640 reservations.
How much should each division be allocated for travel services?
South Division $
West Division
24
Chapter 24 Solutions
Connect Access Card For Fundamental Accounting Principles
Ch. 24 - Prob. 1DQCh. 24 - Prob. 2DQCh. 24 - Prob. 3DQCh. 24 - Prob. 4DQCh. 24 - Prob. 5DQCh. 24 - Prob. 6DQCh. 24 - Prob. 7DQCh. 24 - Prob. 8DQCh. 24 - Prob. 9DQCh. 24 - Prob. 10DQ
Ch. 24 - Prob. 11DQCh. 24 - Prob. 12DQCh. 24 - Prob. 13DQCh. 24 - Prob. 14DQCh. 24 - Prob. 15DQCh. 24 - Prob. 16DQCh. 24 - Prob. 17DQCh. 24 - Prob. 18DQCh. 24 - Prob. 1QSCh. 24 - QS 24-2 Basis for cost allocation C1
In each...Ch. 24 - QS 244
Responsibility accounting report...Ch. 24 - QS 24-5
Allocating costs to departments...Ch. 24 - QS 24-6
Allocating costs to departments P2...Ch. 24 - QS 24-7
Allocating costs to departments
P2...Ch. 24 - Prob. 7QSCh. 24 - QS 24-9
Departmental contribution to overhead...Ch. 24 - QS 24-10
Computing return on investment A1...Ch. 24 - QS 24-11
Computing residual income
A1
Refer to...Ch. 24 -
QS 24-12
Performance measures
A1 A2
Fill in...Ch. 24 - QS 24-13
Computing profit margin and investment...Ch. 24 - Prob. 13QSCh. 24 - Prob. 14QSCh. 24 - Prob. 15QSCh. 24 - Prob. 16QSCh. 24 - Prob. 17QSCh. 24 - Prob. 18QSCh. 24 - Prob. 19QSCh. 24 - Prob. 1ECh. 24 - Prob. 2ECh. 24 - Prob. 3ECh. 24 - Prob. 4ECh. 24 - Prob. 5ECh. 24 - Exercise 24-6 Departmental expense allocation...Ch. 24 - Prob. 7ECh. 24 - Prob. 8ECh. 24 - Prob. 9ECh. 24 - Prob. 10ECh. 24 - Prob. 11ECh. 24 - Prob. 12ECh. 24 - Prob. 13ECh. 24 - Prob. 14ECh. 24 - Prob. 15ECh. 24 - Prob. 16ECh. 24 - Prob. 17ECh. 24 - Prob. 18ECh. 24 - Prob. 19ECh. 24 - Prob. 20ECh. 24 - Prob. 21ECh. 24 - Prob. 22ECh. 24 - Prob. 23ECh. 24 - Prob. 1APSACh. 24 - Prob. 2APSACh. 24 - Prob. 3APSACh. 24 - Prob. 4APSACh. 24 - Prob. 5APSACh. 24 - Prob. 1BPSBCh. 24 - Prob. 2BPSBCh. 24 - Prob. 3BPSBCh. 24 - Prob. 4BPSBCh. 24 - Prob. 5BPSBCh. 24 - Prob. 24SPCh. 24 - Prob. 1AACh. 24 - Prob. 2AACh. 24 - Prob. 3AACh. 24 - Prob. 1BTNCh. 24 - Prob. 2BTNCh. 24 - Prob. 3BTNCh. 24 - Prob. 4BTNCh. 24 - Prob. 5BTNCh. 24 - Prob. 6BTN
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