Question: how is this wrong? i need help Part 1 of 2 Problem 22-2A (Algo) Allocation of indirect expenses to departments LO P2 The following information



Part 1 of 2 Problem 22-2A (Algo) Allocation of indirect expenses to departments LO P2 The following information applies to the questions displayed below) National Retail has two departments, Housewares and Sporting Indirect expenses for the period follow its 00 Heferences Rent # 45.000 Advertising 25.000 Insurance 10.000 Total $ 80,000 The company occupies 4,000 square feet of a rented building. In prior periods, the company divided the $80.000 of Indirect expenses by 4,000 square feet to find an average cost of $20 per square foot and then allocated indirect expenses to each department based on the square feet it occupied The company now wants to allocate Indirect expenses using the allocation des shown below. Value of Insured Department Square Feet Sales Route Housewares 1.440 $ 170,000 $ 59,000 Sporting 2.560 330.000 41.000 Total 4.000 $500,000 $100,000 Problem 22-2A (Algo) Part 1 Required: 1. Allocate indirect expenses to the two departments using the allocation method used in prior periods Sum 3 Hant Advertising Tasurance Total 545,000 25,000 10.000 180,000 Part 1 of 2 5. points The company occupies 4,000 square feet of a rented building. In prior periods, the company divided the $80.000 of indirect expenses by 4,000 square feet to find an average cost of $20 per square foot, and then allocated indirect expenses to each department based on the square feet it occupied. The company now wants to allocate indirect expenses using the location bases shown below. Vituo tard Department Square Feet Bales Aasta House 1.440 $ 370,000 +39.000 Sporting 2.560 130.000 41.000 Total $ 500.000 $ 100,000 book Herences Problem 22-2A (Algo) Part 1 Required: 1. Allocate indirect expenses to the two departments using the allocation method used in prilor periods. Rate Department Housewares Sporting Square feet 1.700 22401 $ 2015 20$ Total 35.200 44,800 ts Total 2.560 4.000 110.000 110.000 $ 500.000 $ 59,000 41.000 $100,000 Problem 22-2A (Algo) Part 2 2. Allocate Indirect expenses to the two departments. Rent expense is allocated based on square feet occupied Advertising expense is allocated based on total sales. Insurance expense is allocated based on the value of insured assets Answer is complete but not entirely correct. Allocate $45.000 of rent using square foot occupied Square Feet Porcent of Coor Total Allocated Housewares 1,760 44% 774 Sporting 2.240 56% 1,254 Total 4,000 100% $ 2,028 Allocate $25,000 of advertising using percentage of sales Safes Percent of Total Cost Allocated 9 EVER WOUWEN Part 2 of 2 Allocate $45,000 of rent using square feet coupled Square Feet Percent of Cont Total Allocated + Housewares 1.780 44% $ 774 Sporting 2.240 50% 1.254 Total 4,000 100% $ 2,028 8 points Allocate $25,000 of advertising using percentage of sales Percent of Sales Total Housewares 290.000 58% $ Sporting 210,000 42% Total 500,000 100% $ Cost Allocated 14,500 10,500 25,000 Allocate $10,000 of insurance using value of insured assets Assets Percent of Insured Total Housewares 51,000 51% $ Sporting 49,000 49% 100,000 100% $ Cost Allocated 5,100 4,900 10,000 Total
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