l (part 2 >Co http/erto.mheducation.com/m.tpx homework chapter 21 (part 2) KQues

Question

l (part 2 >Co http/erto.mheducation.com/m.tpx homework chapter 21 (part 2) KQuestion 2 (of 3) 2. value 10.00 points Overroad Cycle Shop has two service departments (advertising and administration) and two operating departments (cycles and clothing). During 2011, the departments had the folowing direct expenses and occupied the following amount of floor space. Department Advertising Administrative Cycles Clothing $ 15,000 18,600 101,400 12,000 1,086 1,152 6,335 4,224 The advertising department developed and distributed 100 advertisements during the year. Of these, 76 promoted cycles and 24 promoted clothing. The store sold $300,000 of merchandise during the year. Of this amount, $229,000 is from the cycles department, and $71,000 is from the clothing department. The utilities expense of $64,000 is an indirect expense to all departments Complete the departmental expense allocation spreadsheet for Overroad Cycle Shop. Assign (1) direct expenses to each of the four departments, (2) the $64,000 of utilities expense to the four departments on the basis of floor space occupied, (3) the advertising department's expenses to the two operating departments on the basis of the number of ads placed that promoted a department's products, and (4) the administrative department's expenses to the two operating departments based on the amount of sales. (Leave no cells blank be certain to enter "" wherever required. Negative amounts should be indicated by a minus sign. Round your intermediate calculations to 1 decimal place and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Explanation / Answer

OVERROAD CYCLE SHOP Departmental Expense Allocation Sheet For the year Ended December 31, 2011 Allocation of expense to Departments Allocation base Expense account balance Advertising department Administrative Department Cycles department Clothing department Direct Expense $147,000 $15,000 $18,600 $101,400 $12,000 Indirect Utilities expense Square Feet $64,000 $5,431 $5,761 $31,682 $21,125 Total Department expense $211,000 $20,431 $24,361 $133,082 $33,125 Service Dept expense: Advertising Department Ads $15,528 $4,904 Cycle Department=(76/100)*20431, Clothing=(24/100)*20431 Administrative Department Sales $18,596 $5,766 Cycle Department=(229000/300000)*24361, Clothing=(71000/300000)*24361 Total expense allocated to Operating Departments $167,206 $43,794 Total Square Feet 12797 (1086+1152+6335+4224) Allocation of utilities expenses: Advertisement department $5,431 (1086/12797)*64000 Administrative department $5,761 (1152/12797)*64000 Cycles department $31,682 (6335/12797)*64000 Clothing department $21,125 (4224/12797)*64000

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.