Exercise 22-3 Service department expenses allocated to operating departments LO P2

Advertising department expenses of $75,000 and purchasing department expenses of $58,300 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	Sales			Purchase Orders
Books	$	150,000			1,680
Magazines		84,000			945
Newspapers		66,000			875
Total	$	300,000			3,500

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 Alloc of Serv Exp Dept Complete the following table by allocating the expenses of the two service departments (advertising and purchasir operating departments. Advertising Department n Base Percent of AllocatB Percent of Allocation Base Numerator Denominator | % of Total Cost to be A Cost to be Allocated Allocated Cost Books Magazines Newspapers Totals Purchasing Departmert Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Books Magazines Newspapers Totals Compiete this question Dy entering your answers in the tabs beiow. Allocation of Alloc of Serv EXp Dept Complete the spreadsheet by allocating the expenses of the two service departments (advertising and pur 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 Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated $833,000 833,000$ 75,000 S 58,300$174,900166,600$ 358,200