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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. 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 depa 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 0 0 Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 Purchasing Department Books Magazines Newspapers Totals 0 0 0 0 0 Allocation of Exp Alloc of Serv Dept> Complete this question by entering your answers in the tabs below. Alloc of Serv Allocation of 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 $ 698,000 $ 24,000 $ 34,000 425,000 Magazines $ 90,000 Newspapers $ 125,000 $ Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated $ 698,000 $ 24,000 $ 34,000 $ 425,000 $ 90,000 $ 125,000
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