Exercise 22-3 Service department expenses allocated to operating departments LO
ID: 2522100 • Letter: E
Question
Exercise 22-3 Service department expenses allocated to operating departments LO P2
Advertising department expenses of $75,000 and purchasing department expenses of $58,300 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.
Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.
omplete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.
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.)
Department Sales Purchase Orders Books $ 150,000 1,680 Magazines 84,000 945 Newspapers 66,000 875 Total $ 300,000 3,500Explanation / Answer
Allocation of advertising department expense
Allocation of purchasing department expense
Department sales Numerator Denominator % of total cost to be allocated allocated costs Books 150000 150000 300000 50% 75000 37500 Magazines 84000 84000 300000 28% 75000 21000 Newpapers 66000 66000 300000 22% 75000 16500 Total 300000 100% 75000Related Questions
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