Complete the following table by allocating the expenses of the two service depar
ID: 2415836 • Letter: C
Question
Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments (see the expenses below) Advertising Allocation Base Percent of Allocation Bas Cost to be allocated Allocated Cost Numerator Denominator % of Total Books Dept Magazines Dept Newspapers Dept Totals Purchasing Allocation Base ercent of Allocation Bas Cost to be allocated Allocated Cost Numerator Denominator % of Total Books Dept Magazines Dept Newspapers Dept Totals COZY BOOKSTORE Departmental Expense Allocation Spreadsheet Expense Totals Advertising Purchasing Books 31,600$ ews 63,300 $ 158,200 $ Total dept. exp Service Dept. Expenses 221,500 S$ 316,400 Purchasing Dept Total I expenses allocated SExplanation / Answer
Answer:
In $ In $ In $ In $ Advertising Allocation Base Percentage of Allocation Base Cost to be allocated Allocated Cost Department Numerator Denominator % of total Book Dept Dollar Sales 200000 400000 50% 31600 15800 Magazines Dept Dollar Sales 84000 21% 6636 Newspapers Dept Dollar Sales 116000 29% 9164 Totals 400000 31600