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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

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.

Department Sales Purchase Orders
Books $ 179,400 644
Magazines 81,900 406
Newspapers 128,700 350
Total $ 390,000 1,400

Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.

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