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Advertising department expenses of $85,600 and purchasing department expenses of $51,400 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales
Advertising department expenses of $85,600 and purchasing department expenses of $51,400 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 Sales Purchase Orders 1,551 693 1,056 $193,200 109,200 117,600 Total $ 420,000 3,300 Complete the following table 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.) Advertising Department Allocation Base Cost to be Allocated Allocated Cost NumeratorDminator % of Total Books Dept Magazines Dept Newspapers Dept Totals Purchasing Allocation Base llo Cost to be Allocated Allocated Cost Department Denominator % of Total Books Dept Magazines Dept Newspapers Dept Totals
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