Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $42,800 and purchasing department expenses of $32,100 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 Department Books Magazines Newspapers $180,000 108,000 112,000 Purchase Orders 1,170 520 910 Total $400,000 2.600 Complete 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.) Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Advertising Department Books Dept Magazines Dept Newspapers Dept Totals Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Purchasing Department Books Dept Magazines Dept Newspapers Dept Totals Allocation Base COZY BOOKSTORE Allocation of Expenses to Departments Expense Advertising Purchasing Books Magazines Dept.Newspa Account Dept. Balance Dept. Dept. Dept. Dept. $ $ 42,800 $ 32,100 $ 112,400 $ 107,000 $ 535,000 240,700 Total department expenses Advertising Dept. Sales Purchasing Dept. Purch. orders Total expenses allocated to operating depts. $ 535,000