Homework Answers
| Advertising | Allocation Base | Percent of Allocation Base | Cost to be Allocated | Allocated Cost | ||
| Department | Sales | Numerator | Denominator | % of Total | ||
| Books Dept | 202,400 | 202,400 | 440000 | 46% | 88600 | 40756 |
| Magazines Dept | 123,200 | 123,200 | 440000 | 28% | 88600 | 24808 |
| Newspapers Dept | 114,400 | 114,400 | 440000 | 26% | 88600 | 23036 |
| Totals | 440000 | 100% | 88600 | |||
| Purchasing | Allocation Base | Percent of Allocation Base | Cost to be Allocated | Allocated Cost | ||
| Department | Number of orders | Numerator | Denominator | % of Total | ||
| Books Dept | 861 | 861 | 2100 | 41% | 44300 | 18163 |
| Magazines Dept | 609 | 609 | 2100 | 29% | 44300 | 12847 |
| Newspapers Dept | 630 | 630 | 2100 | 30% | 44300 | 13290 |
| Totals | 2100 | 100% | 44300 | |||
| 2 | ||||||
| COZY BOOKSTORE | ||||||
| Departmental Expense Allocation Spreadsheet | ||||||
| Allocation Base | Expense Totals | Advertising | Purchasing | Books | Magazines | Newspapers |
| Total department expenses | 886000 | 88600 | 44300 | 248100 | 177200 | 327800 |
| Service Dept. expenses | ||||||
| Advertising Dept. | -88600 | 40756 | 24808 | 23036 | ||
| Purchasing Dept. | -44300 | 18163 | 12847 | 13290 | ||
| Total expenses allocated | 886000 | 0 | 0 | 307019 | 214855 | 364126 |
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