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Advertising department expenses of $71,000 and purchasing department expenses of $78,900 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales
Advertising department expenses of $71,000 and purchasing department expenses of $78,900 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. Department Books Magazines Newspapers Total Sales $201,600 92,400 126,000 $420,000 Purchase Orders 1,225 725 550 2,500 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. 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. Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Advertising Department Books Magazines Newspapers Totals Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Purchasing Department Books Numerator Denominator % of Total Magazines Newspapers Totals 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 Expense Totals Advertising Purchasing Books $ 789,000 $ 71,000 $ 78,900 $ 213,000 Magazines Newspapers $ 157,800 $ 268,300 Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated $ 789,000 Allocation of Exp Alloc of Serv Dept>
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