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Exercise 9-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $57,800
Complete this question by entering your answers in the tabs below. Allocation of Exp Alloc of Serv Dept Complete the followin
Complete this question by entering your answers in the tabs below. Allocation of EXP Alloc of Serv Dept Complete the spreadsh
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Answer #1
Allocation percent of Allocation Base Cost to be Allocated
Advertising Base Allocated cost
Department Sales numerator Denominator % of total
books 184,900 184,900 430,000 43% 57,800 24854
Magazine 107,500 107,500 430,000 25% 57,800 14450
Newspapers 137,600 137,600 430,000 32% 57,800 18496
Totals 430,000 100% 57800
Allocation percent of Allocation Base Cost to be Allocated
purchasing Base Allocated cost
Department pur orders numerator Denominator % of total
books 816 816 1,700 48% 57,800 27744
Magazine 476 476 1,700 28% 57,800 16184
Newspapers 408 408 1,700 24% 57,800 13872
Totals 1,700 100% 57800
Departmental Expense Allocation Spreadsheet
Expense Advertising purchasing Books magazines newspapers
totals
total deptt expense 578,000 57,800 57,800 138,700 115,600 208,100
service dept expense
Advertising dept -57,800 24854 14450 18496
purchasing dept -57,800 27744 16184 13872
total expense allocated 578,000 0 0 191,298 146,234 240,468
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