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Exercise 9-3 Service department expenses allocated to operating departments LO P2 Exercise 9-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses

Exercise 9-3 Service department expenses allocated to operating departments LO P2

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Exercise 9-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $38,900 and purchasing department expenses of $38,900 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 $180,000 108,000 72,000 $360,000 Books 984 Magazines 600 816 Newspapers 2,400 Total 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. Alloc of Serv Dept Allocation of Exp Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Allocation Base Advertising Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Department Books Magazines Newspapers Totals Percent of Allocation Base Purchasing 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 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 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 Magazines News papers 555,000 38,900 38,900 $144,300 111,000 221,900 Expense Totals Advertising Purchasing Books Total department expenses Service Dept. Expenses |Advertising Dept. Purchasing Dept. Total expenses allocated 555,000 Allocation of Exp Alloc of Serv Dept>

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