Question: Please answer in proper format with supporting calculation Please answer correct otherwise skip it Required information Problem 9-2A (Algo) Allocation of indirect expenses to departments
Please answer in proper format with supporting calculation
Please answer correct otherwise skip it


Required information Problem 9-2A (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. Rent $ 45,000 Advertising 25,000 Insurance 10,000 Total $ 80,000 The company occupies 4,000 square feet ofa rented building. In prior periods, the company divided the $80,000 of indirect expenses by 4,000 square feet to nd 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 bases shown below. Value of Insured Department Square Feet Sales Assets Housewares 2,040 $ 220,000 $ 44,000 Sporting 1,960 280.000 56.000 Total 4.000 $ 500.000 $ 100.000 Problem 9-2A (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. Allocate $45,000 of rent using square feet occupied Square Feet Percent of Total Cost Allocated Housewares 2,040 Sporting 1,960 Total 4,000 0% $ 0 Allocate $25,000 of advertising using percentage of sales Sales Percent of Total Cost Allocated Housewares Sporting Total $ 0 0% $ Allocate $10,000 of insurance using value of insured assets Assets Insured | Percent of Total Cost Allocated Housewares Sporting Total 0% $ 0
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