Given the following information about the clothing and hardware departments of Phillips Company, prepare a departmental expense allocation sheet showing expenses by department.

.......................................................Allocation Basis
Rent and Insurance: .................................Floor space
Advertising and Supplies: .........................Net sales
Salaries: .............................................Gross profit of clothing and hardware departments

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Direct Expenses Clothing Account 1. Rent Expense 2. Insurance Expense 3. Depreciation Expense 4. Advertising Expense 5. Supplies Expense 6. Salaries Expense Indirect Expenses $12,000 7,600 Hardware $1,500 330 $2,300 640 2,200 3,150 6,000 Additional Facts Clothing Hardware Net Sales Cost of Goods Sold Floor space $78,000 53,000 $30,000 20,000 300 square feet 460 square feet