Exercise 09-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $57,800 and purchasing department expenses of $57,800 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 $184,900 Magazines 107,500 Sales Books Purchase Orders 816 476 403 1.700 Newspapers Total 137,600 $430,000 Allocation of Exp Alloc of Serv Dept Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Allocation Base Cost to be Allocated Allocated out Percent of Allocation Base Numerator Denominator % of Total Advorsing Department Books Magazines Newspapers Totals Cost to be Allocated Allocated Cost Allocation Base Percent of Allocation Base Numerator Denominator % of Total Purchasing Department Books Magurines Newspapers Totals Allocation of Exp Alloc of Serv Dept Complete the spreadsheet 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.) COZY BOOKSTORE Departmental Expense Allocation Spreadsheet Exponse Totals Advertising Purchasing Books Magazines Newspapers $ 578,000 $ 57.800 $ 57,800 $ 138,700 $ 115,600 $ 208,100 Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept Total expenses allocated 578,000