Advertising department expenses of $57,200 and purchasing department expenses of $45,800 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 Sales Purchase Orders
Books $167,200 1,290
Magazines 76,000 900
Newspapers 136,800 810
Total $380,000 3,000
Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.
COZY BOOKSTORE
Departmental Expense Allocation Spreadsheet
Expense Advertising Purchasing Books Magazines Newsp
Totals
Total department $572,000 $57,200 45,800 $114,400 $114,4002 40,200
Service Dept. Expenses
Advertising Dept.
Purchasing Dept.
Total expenses
allocated 572.000