Exercise 24-3 Service department expenses allocated to operating departments P2 a The following is a partially completed lower section of a departmental expense allocation spreadsheet for Cozy Bookstore. It reports the total amounts of direct and indirect expenses allocated to its five departments. Complete the spreadsheet by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. A B D E F G 1 Allocation of Expenses to Departments 2 Expense 3 Allocation Account Advertising Purchasing Books Magazines Newspapers 4 Base Balance Dept. Dept. Dept. Dept. Dept. 5 Total department expenses $698,000 $24.000 $34,000 $425,000 $90,000 S125.000 6 Service department expenses 7 Advertising department..... Sales ? ? ? ? Purchasing department........... Purch, orders ? ? ? ? 9 Total expenses allocated to operating departments S 0 0 ? ? 8 ? S ? Page 1071 Page 1071 Advertising and purchasing department expenses 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 Books $495.000 Magazines 198,000 Newspapers 207.000 Total $900,000 Purchase Orders 516 360 324 1,200