embedyFZJnRY ytbeARAT.mp Overroad Cycle Shop has two service departments (advert

Question

embedyFZJnRY ytbeARAT.mp Overroad Cycle Shop has two service departments (advertising and administration) and two operating departments (cycles and clothing). During 2011, the departments had the following direct expenses and occupied the following amount of floor space Department Direct Expenses Square Feet Administrative Cycles Clothing 17,000 18,500 101,600 12,000 1,090 1,154 6,337 4,224 The advertising department developed and distributed 100 advertisements during the year. Of these, 75 promoted cycles and 25 promoted clothing. The store sold $300,000 of merchandise during the year. Of this amount, $225,000 is from the cycles department, and $75,000 is from the clothing department. The utiities expense of S66,000 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 $66,000 of utilties expense to the four departments on he basis of floor space occupied. (3) the advertising department's expenses to the two operating departments on the basis of the number of ads placed that promoted a department's products, and (4) the administrative departments expenses to the two operating departments based on the amount of sales. (Leave no cells blank be certain to enter " wherever required. Negative amounts should be indicated by a minus sign. Round answers to the nearest dollar amount. Omit the "$" sign in your response.) your intermediate calculations to 1 decimal place and final OVERROAD CYCLE SHOP Departmental Expense Allocation Spreadsheet For Year Ended December 31, 2011 Allocation Base Account Dept Dept. Direct expenses Indirect ubilities expenses Sq. feet Total dept. exp. Service Dept. Expenses Advertising Dept. Ads Administrative Dept. Total exp. allocated to operating depts. 4 MacBook Pro esc 8

Explanation / Answer

Allocation Base Expense Account balance Advertising Dept Administrative Dept Cycles Dept Clothing Dept Direct expenses 149100 17000 18500 101600 12000 Indirect Utilities Sq feet 66000 5618.1 5948 32662.4 21771.5 Total Dept exp 215100 22618.1 24448 134262.4 33771.5 Service Dept. Exp Advertising Dept Ads -22618.1 16963.6 5654.5 Adminstrative Dept Sales -24448 18336 6112 Total exp. Allocated 215100 0 0 169562 45538

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