Burton Co. Requests assistance allocating costs and determining the profitability of its two departments: Skis and Snowboards. Shared indirect expenses include rent and supervision. Use the Tableau Dashboard, with information from Burton’s December 31 year-end reports, for our analysis.

Compute gross profit for each department. 2. Allocate rent expense to each department.

Required 1Required 2

Compute gross profit for each department.

Department Gross Profit

Skis

Snowboards

Allocate rent expense to each department.

Rent expense Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost

Department Numerator Denominator % of Total

Skis

Snowboards

Totals

Question

contestada

Respuesta :

Parrain Parrain · Answer 1 · 2022-04-19T15:31:30+02:00

Based on the sales and cost of goods sold for both departments of Burton Co., the gross profits are:

The rent expenses can be allocated as:

This can be found as:

= Sales - Gross profit

Ski department: Snowboards:

= 100,000 - 42,000 = 75,000 - 60,000

= $58,000 = $15,000

The allocation base for the rent expenses is the square feet occupied by each department.

Ski department:

Allocation Base Percent of base Cost to be allocated Allocated cost

14,000 feet² 70% $8,000 $5,600

Snowboard department:

Allocation Base Percent of base Cost to be allocated Allocated cost

6,000 feet² 30% $8,000 $2,400

Percent of base for Ski department is:

= 14,000 / (14,000 + 6,000)

= 70%

Allocated cost is:

= 70% x 8,000

= $5,600

Percent of base for Snowboard department is:

= 6,000 / (14,000 + 6,000)

= 30%

Allocated cost is:

= 30% x 8,000

= $2,400

Find out more on allocated cost at https://brainly.com/question/26656438.