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Company X has Three departments supported by two service departments. Cost and operational data for each department follow: Sales department Sales Cost of goods sold
Company X has Three departments supported by two service departments. Cost and operational data for each department follow:
Sales department | Sales | Cost of goods sold | Square footage | Orders issues |
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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