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.
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.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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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.
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