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2 Advertising department expenses of $25,600 and purchasing department expenses of $40,900 of Cozy Bookstore are allocated to operating departments on the basis of dollar
2 Advertising department expenses of $25,600 and purchasing department expenses of $40,900 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. B points Department Books Magazines Newspapers Total Sales $210,700 86,000 133,300 $430,000 Purchase Orders 1,620 1,080 900 3,600 eBook Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Hint Complete this question by entering your answers in the tabs below. Allocation of Exp Alloc of Serv Dept Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Advertising Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Department Books Magazines Newspapers Totals Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Purchasing Department Books Magazines Newspapers Totals Allocation of Exp Alloc of Serv 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 $ 511,000 $ 25,600 $ 40,900 $ 148,200 $ 102,200 $ 194,100 Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated 511,000
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