The
following is a partially completed lower section of a departmental expense
allocation spreadsheet for Bookworm Bookstore.
E21-5
Service department expenses allocated to operating departments
E21-5
The following is a partially completed lower section of a departmental expense
allocation spreadsheet for Bookworm 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.
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 the three operating departments follows.
Department
Sales Purchase Orders
Books . . . . . . . . . . . . . . . $448,000 424
Magazines . . . . . . . . . . . . 144,000 312
Newspapers . . . . . . . . . . 208,000 264
Total . . . . . . . . . . . . . . . . $800,000 1,000
Check
Total expenses allocated to Books Dept., $450,040
TUTORIAL PREVIEW : E21-5 The following is a
partially completed lower section of a departmental expense allocation
spreadsheet for Bookworm Bookstore.
BOOKWORM BOOKSTORE
Departmental Expense
Allocation Spreadsheet
For Period Ended
_______
____Allocation of
Expenses to Departments___
|
|||||||
Allocation Base
|
Expense Account Balance
|
Advertising Dept.
|
Purchasing Dept.
|
Books Dept.
|
Magazines Dept.
|
News-papers Dept.
|
|
Total dept. exp.
|
$ 654,000.00
|
$ 22,000.00
|
$ 30,000.00
|
$ 425,000.00
|
$86,000.00
|
$ 91,000.00
|
|
Service dept. expenses
|
|||||||
Advertising Dept.
|
Sales
|
$ -22,000.00
|
$ 12,320.00
|
$ 3,960.00
|
$ 5,720.00
|
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