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OS 24-6 (Algo) Allocating costs to departments LO P2 Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs
OS 24-6 (Algo) Allocating costs to departments LO P2 Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $122,000. Sales for its operating departments follow. Department Sales 1 $ 207,500 2 381,300 3 240,700 How much advertising cost is allocated to each operating department if the allocation is based on departmental sales? (Do not round your intermediate calculations.) OS 24-9 (Algo) Rent expense allocated to departments LO P2 A retailer pays $170,000 rent each year for its two-story building. Space in this building is occupied by five departments as shown here. Department Square feet occupied Jewelry 1,435{first-floor) Cosmetics 2,665ifirst-floor) Department Square feet occupied Housewares 1.845(second-floor) Tools 615(second-floor) Shoes 1.640(secondfloor) The company allocates $119,000 of total rent expense to the first floor and $51,000 to the second floor. It then allocates rent expense for each floor to the departments on that floor based on square feet occupied. Determine the rent expense to be allocated to each department. Jewelry Department Cosmetics Department Exercise 24-3 (Algo) Service department expenses allocated to operating departments LO P2 Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $57,200 and for Purchasing is $45,800. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders. Purchase Department Sales Orders Books $ 167, 200 1, 290 Magazines 76, 000 900 Newspapers 136 , 800 810 Total $ 380, 000 3, 000 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information. Office Allocation Base Percent of Allocation Base Cost to be Allocated | Allocated Cost Department Numerator Denominator | % 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
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