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Advertising department expenses of $38,900 and purchasing department expenses of $38,900 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales
Advertising department expenses of $38,900 and purchasing department expenses of $38,900 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. Sales Purchase Orders Department Books Magazines Newspapers Total 180,00e 108,006 984 600 816 2,400 72,000 360,000 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 Rev 1 of 1 Next 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 (ad operating departments. vertising and purchasing) to the three Advertising Department Books Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator | % of Total Sales S 180,000 s 360,000 360,000 360,000 50r S 38,900 S 38,900 38,900 19.450 11,670 7,780 38,900 Magazines Newspapers 108,000 30 72,000 Totals 100 Purchasing Allocation BasePercent of Allocation BaseCost to be Allocated Allocated Cost Department Number of orders | Numerator ID nominator! % of Tota 38.900 S Books Magazines Newspapers 984 600 816 2.400 2.400 2 400 15,949 9,725 13.226 25 38.900 34 47 PM Q444 SD Allocation of Alloc of Serv Exp Dept omplete 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 555,000 38,900 38,900 $ 144.300 111,000 S 221,900 Total department expensesS Service Dept. Expenses Advertising Dept Purchasing Dept Total expenses allocatedS 19,450 7,780 13,226 555,000 S 38,900 S 38,900 179,699 S 132,395 S 242,906 11,670 9,725 15.949
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