Exercise 9-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $59,700 and purchasing department expenses of $52,200 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 Purchase Orders Department Books Magazines Newspapers Total $ 210,000 126,000 84,000 $ 420,000 602 322 476 1,400 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. 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 Advertising Department Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator l % of Total Books Magazines Newspapers Totals Purchasing Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator! % of Total Books Magazines Newspapers Totals Allocation of Exp Alloc of Serv 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 Books Magazines Newspapers Total department expenses 746,000 S 59,700 $ 52,200171,600S 149,200S 313,300 Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated$ 746,000