1) The following is a partially completed lower section of a departmental expense allocation spreadsheet for Haston Bookstore. It reports the total amounts of direct and indirect expenses allocated to its five departments. Complete the spreadsheet by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. This problem is almost the same as the class problem. See the class problem solution video if you feel stuck. Allocation of Expenses to Departments 2) Allocation Bare Tatal department expense Service department expenses Advertising dept.-Salor Purchasing dept.-P.O.'s Total exp. Allocated to uporati Expense Account Balance Advertising Dept. $653,000 $ 23,000 $ Purchasing Dept. 30,000 Magazines Nowpapor Books Dept. $426,000 Dept. Dopt. $85,000 $ 89,000 Advertising and purchasing department expenses are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for three operating departments follows. Department Books Magazines Newspapers Total Sales Purchase Orders $440,000 400 160,000 250 200,000 350 800,000 1000 Check: Total expenses allocated to Books Dept., $450,650 Expert Garage pays $128,000 rent each year for its two-story building. The space in this building is occupied by five departments as specified here. Paint department Engine department Window department Electrical department Accessory department 1,500 square feet of first-floor space 3,300 square feet of first-floor space 2,100 square feet of second-floor space 980 square feet of second-floor space 1,720 square feet of second-floor space The company allocates 65% of total rent expense to the first floor and 35% to the second floor, and then allocates rent expense for each floor to the departments occupying that floor on the basis of space occupied. Determine the rent expense to be allocated to each department. (Round percents to the nearest one-tenth and dollar amounts to the nearest whole dollar.) This problem seems challenging at first, but is a great example of real world decision making. Give yourself some time and really think about it.