The following is a partially completed lower section of a departmental expense allocation spreadsheet for...
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Accounting
The following is a partially completed lower section of a departmental expense allocation spreadsheet for Haston Bookstore. It reports the total amounts of direct and indirect expenses allocated to its five departments. Complete the spreadsheet by allocating the expenses of the two service departments (advertising and purchasing)to the three operating departments. 2) Allocation of Expenses to Departments Expense Account Balance Advertising Dept. Purchasing Dept. Books Dept. Magatines Dept. Newspaper Dept. Allocation Base Total department expense $ 653,000 23,000 $ 30,000 426,000 85,000$ 89,000 Service department expenses Advertising dept-Sales Purchasing dept.-P.O's Total exp. Allocated to opera Advertising and purchasing department expenses are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for three operating departments follows Department Books Magazines Newspapers Total Sales Purchase Orders 440,000 160,000 200,000 800,000 400 250 350 1000 Check: Total expenses allocated to Books Dept., $450,650
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