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1. a. b. c. Advertising department expenses of $48,200 and purchasing department expenses of $40,200 of Cozy Bookstore are allocated to operating departments on the

1.

a.

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c.

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Advertising department expenses of $48,200 and purchasing department expenses of $40,200 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Department Books Magazines Newspapers Total Sales $167, 700 89,700 132,600 $390,000 Purchase Orders 1,232 756 812 2,800 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Complete this question by entering your answers in the tabs below. Allocation of Alloc of Serv Exp Dept Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 Advertising Department Books Magazines Newspapers Totals 0 0 0 Allocation Base Cost to be Allocated Percent of Allocation Base Numerator Denominator % of Total Allocated Cost 0 Purchasing Department Books Magazines Newspapers Totals 0 0 0 Allocation of Exp Alloc of Serv Dept> Allocation of Alloc of Serv Exp Dept Complete the spreadsheet by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. (Amounts to be deducted should be indicated with minus sign.). COZY BOOKSTORE Departmental Expense Allocation Spreadsheet Expense Totals Advertising Purchasing Books Magazines Newspapers $ 803,000 $ 48,200 $ 40,200 $ 208,800 $ 160,600 $ 345,200 Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated $ 803,000 $ 48,200 $ 40,200 $ 208,800 $ 160,600 $ 345,200

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