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