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Arkansas Toys, a retail store, has three sales departments supported by two service departments. Cost and operational data for each department follow: Purch. Orders Issued
Arkansas Toys, a retail store, has three sales departments supported by two service departments. Cost and operational data for each department follow: Purch. Orders Issued Sales Department Sales $92,160 2 69,120 3 80,640 Cost of Square Goods Sold Footage $36,864 1,728 32,832 3,024 32,256 1,296 1,260 1,680 1,310 Cost Service Departments Advertising Purchasing Allocation Basis Sales No. of purchase orders issued $10,000 12,000 Determine the service department expenses to be allocated to Sales Department 1, 2 & 3 for (round answers to whole dollars): Advertising and purchasing
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