Advertising department expenses of $24,000 and purchasing department expenses of $34,000 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 $495,000 516
Magazines 198,000 360
Newspapers 207,000 324
Total $900,000 1,200
Allocate the expenses of the two service departments (advertising and purchasing) to the three operating departments and create an Expense Allocation sheet for the Cozy Bookstore