Answered Essay: Marathon Running Shop has two service departments (advertising and administration) and two operating departmen

Marathon Running Shop has two service departments (advertising and administration) and two operating departments (shoes and clothing). During 2013, the departments had the following direct expenses and occupied the following amount of floor space.

 

  Department Direct Expenses Square Feet
  Advertising $ 17,000 1,280
  Administrative 18,600 1,600
  Shoes 101,600 8,320
  Clothing 11,700 4,800

 

The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30 promoted clothing. The store sold $350,000 of merchandise during the year. Of this amount, $262,500 is from the shoes department, and $87,500 is from the clothing department. The utilities expense of $63,000 is an indirect expense to all departments.

 

Complete the departmental expense allocation spreadsheet for Marathon Running Shop. Assign (1) direct expenses to each of the four departments, (2) the $63,000 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)Utilities Allocation Base Percent of Allocation Base Cost to be allocated Allocated Cost Department Floor space occupied Numerator Denominator % of Total Advertising Administrative Shoes Clothing Totals Advertising Department Allocation Base Cost to be allocated Allocated Cost Number of ads Numerator Denominator | % of Total Shoes Clothing Totals Administrative Department Allocation Base Percent of Allocation Base Cost to be allocated Allocated Cost Sales Numerator Denominator | % of Total Shoes Clothing Totals MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2013 Expense Totals Direct expense Indirect utilities expenses Total dept. exp Service Dept. Expenses

Utilities Allocation Base Percent of Allocation Base Cost to be allocated Allocated Cost Department Floor space occupied Numerator Denominator % of Total Advertising Administrative Shoes Clothing Totals Advertising Department Allocation Base Cost to be allocated Allocated Cost Number of ads Numerator Denominator | % of Total Shoes Clothing Totals Administrative Department Allocation Base Percent of Allocation Base Cost to be allocated Allocated Cost Sales Numerator Denominator | % of Total Shoes Clothing Totals MARATHON RUNNING SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2013 Expense Totals Direct expense Indirect utilities expenses Total dept. exp Service Dept. Expenses

Expert Answer

 

Marathon Running Shop

  1. Statement showing assigning of direct and indirect expenses to each of the four departments:
Allocation of utilities -indirect expenses:
Utilities Allocation Base Percent of allocation base Cost to be allocated Allocated Cost
Department Floor space occupied Numerator Denomiator % of total
Advertising 1,280 Sq. Ft. 1280 Sq. Ft. 16,000 8 $63,000 $5,040
Administrative 1,600 Sq. Ft. 1,600 16,000 10 $63,000 $6,300
Shoes 8320 Sq. Ft. 8,320 16,000 52 $63,000 $32,760
Clothing 4,800 Sq. Ft. 4,800 16,000 30 $63,000 $18,900
Totals 16,000 Sq. Ft 100 $63,000
Advertising Allocation Base Percent of allocation base Cost to be allocated Allocated Cost
Department Number of ads Numerator Denominator % of total
Shoes 90 90 120 75 17,000 $12,750
Clothing 30 30 120 25 $17,000 $4,250
Totals 120 100 $17,000
Aministrative Allocation Base Percent of allocation base Cost to be allocated Allocated Cost
Department Sales Numerator Denominator % of total
Shoes $262,500 262,500 350,000 75 $18,600 $13,950
Clothing $87,500 87,500 350,000 25 $18,600 $4,650
Totals $350,000 100 $18,600
MARATHON RUNNING SHOP
Departmental Expense Allocation Spreadsheet
for the year ended December 31, 2013
Expense Totals Advertising Administrative Shoes Clothing
Direct Expense $148,900 $17,000 $18,600 $101,600 $11,700
Indirect Utilities Expense $63,000 $5,040 $6,300 $32,760 $18,900
Total dept. exp $211,900 $22,040 $24,900 $134,360 $30,600
Service Dept. Expenses
MARATHON RUNNING SHOP
Departmental Expense Allocation Spreadsheet
for the year ended December 31, 2013
Expense Totals Advertising Administrative Shoes Clothing
Direct Expense $148,900 $17,000 $18,600 $101,600 $11,700
Indirect Utilities Expense $63,000 $5,040 $6,300 $32,760 $18,900
Total dept. exp
Service Dept. Expenses
Advertising Dept. ($22,040) $16,530 $5,510
Administrative Dept. ($24,900) $18,675 $6,225
Total expenses allocated $211,900 $169,565 $42,335
Buy Essay
Calculate your paper price
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

24/7 Customer Support

Our agents are ready to help you around the clock. Please feel free to reach out and enquire about anything.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

HOW OUR ONLINE ESSAY WRITING SERVICE WORKS

Let us write that nagging essay.

STEP 1

Submit Your Essay/Homework Instructions

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.

STEP 2

Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.

STEP 3

Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.

STEP 4

Receive your Paper

After Editing, your paper will be sent to you via email.

× How can I help you?