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Exercise 9-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $36,600 and purchasing department expenses of $26,200 of Cozy Bookstore

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Exercise 9-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $36,600 and purchasing department expenses of $26,200 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 179,400 81,900 Purchase Orders Department Books 644 Magazines Newspapers 406 128,700 350 390,000 Total 1,400 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 purchasing) to the three operating departments. Percent of Allocation Base Advertising Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Department Books Magazines Newspapers Totals Percent of Allocation Base Cost to be Allocated Purchasing Allocation Base Allocated Cost Numerator Denominator % of Total Department Books Magazines Newspapers Totals 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 523,000 36,600 26,200 $146,400 Magazines News pa pers $ 104,600 209,200 Books Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. 523,000 Total expenses allocated Allocation of Exp Alloc of Serv Dept

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