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Advertising department expenses of $24,000 and purchasing department expenses of $34,000 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales
Advertising department expenses of $24,000 and purchasing department expenses of $34,000 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 $495,000 198,000 207,000 $900,000 Purchase Orders 516 360 324 1,200 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 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 Department Sales Numerator Denominator % of Total Books $ $ 87 X $ 24,000 87 $ 495,000 198,000 207,000 Magazines Newspapers 24,000 495,000 198,000 207,000 900,000 568,966 227,586 237,931 1,034,483 13,200 54,620,690 57,103,447 $ 24,000 87 24,000 Totals Purchasing Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Number of orders Numerator Denominator % of Total Books 516 1,200 X 43 X 2,791 $ 34,000 14,620 Magazines 360 1,200 X 43 2,791 34,000 948,838 Newspapers 324 1,200 X 43 34,000 2,791 8,372 948,838 34,000 Totals 1,200
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