newconnect.mheducation.com ?? 22 0 Saved Help Save & Exit Submi Check my work 2

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newconnect.mheducation.com ?? 22 0 Saved Help Save & Exit Submi Check my work 2 Advertising department expenses of $85,600 and purchasing department expenses of $51,400 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. Purchase Orders 1,551 points Books Magazines Nevspapers Total $193, 200 109,200 117,600 $420,000 693 1,056 3,300 Hint Print Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three Referencesoperating departments. Complete this question by entering your answers in the tabs below 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 ertis Percent of A Cost to be Allocated Allocated Numerator 1 Denominator | % of Total Books Magazines Newspapers Totals

Explanation / Answer

Advertising Allocaton % of Allocation Base Cost to be Allocated Base Num. Den % of Total Allocated Cost Department Books Dolar sales 193200 420000 46% 85600 39376 magazones Dolar sales 109200 420000 26% 85600 22256 newspaper Dolar sales 117600 420000 28% 85600 23968 Totals 420000 420000 100% 85600 85600 Purchasing Allocaton % of Allocation Base Cost to be Allocated Base Num. Den % of Total Allocated Cost Department Books Purchase orders 1551 3300 47% 51400 24158 magazones Purchase orders 693 3300 21% 51400 10794 newspaper Purchase orders 1056 3300 32% 51400 16448 Totals 3300 3300 100% 51400 51400 DEPARTMENTAL EXPENSE ALLOCATION SPREADSHEET Expense Advertising Purchasing Books Magazines Newspaper Total Total Departmental expense 856000 85600 51400 214000 171200 333800 Service deptt expense Adverrtising -85600 39376 22256 23968 Purchasing -51400 24158 10794 16448 Total Expense allocated 856000 0 0 277534 204250 374216

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