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Advertising department expenses of $25,300 and purchasing department expenses of $20,200 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales
Advertising department expenses of $25,300 and purchasing department expenses of $20,200 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 $182,400 87,400 110,200 $380,000 Purchase Orders 1,025 625 850 2,500 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 Advertising Department Books Magazines Newspapers Totals Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Purchasing Department Books Magazines Newspapers Totals 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 $ 506,000 $ 25,300 $ 20,200 $ 101,200 $ 101,200 $ 258,100 Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated $ 506,000
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