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Exercise 09-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $85,600 and purchasing department expenses of $51,400 of Cozy Bookstore

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Exercise 09-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $85,600 and purchasing department expenses of $51,400 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 Books Magazines Newspapers Total Sales $193,200 109,200 117,680 $420,000 Purchase Orders 1,551 693 1,056 3,300 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments, Complete this question by entering your answers in the tabs below. 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. Advertising Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 Department Books Magazines Newspapers Totals 0 O 0 Allocation Base Cost to be Allocated Allocated Cost Purchasing Department Books Percent of Allocation Base Numerator Denominator % of Total 0 0 Magazines Newspapers Totals 0 0 Alles of Serv Dept> Complete this question by entering your answers in the tabs below. Allocation of Alloc of Serv Exp 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 Expense Totals Advertising Purchasing Books Magazines Newspapers Total department expenses $ 856,000 $ 85,600 $ 51,400 $ 214,000 $ 171,200 $ 333.800 Service Dept. Expenses Advertising Dept Purchasing Dept. Total expenses allocated $ 856,000 $ 85,600 $ 51,400 $ 214,000 $ 171,200 $ 333,800

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