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e work you have done so far is correct, you may not have completed everything. value: 3.57 Exercise 22-3 Service department expenses allocated to operating

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e work you have done so far is correct, you may not have completed everything. value: 3.57 Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $24,000 and purchasing department expenses of $34,000 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 $ 495,000 198,000 207,000 516 324 1.200 Newspapers Total $ 900,000 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 3 Answer is not complete Allocation Cost to be Advertising Department Sales NumeratorDenominator % of Total S 495,000 s 900,000 24000 s 13.200 5 280 5 520 Books Dept 55 S 198,000 900.000 125,000 207,000 900 0

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