Arkansas Toys, a retail store, has three sales departments supported by two service departments. Cost and operational data for each department follow: Sales Deptartment Sales Cost of Goods SoldSquare FootagePurch. Orders Issued1 $92,160 $36,8641,7281,260269,12032,8323,0241,680380,64032,2561,2962,310ServiceDepartmentsAllocation BasisCostAdvertising………..Sales$10,000Purchasing………...No. of purchase orders issued 12,000Determine the service department expenses to be allocated to Sales Department 1 for (round answers to whole dollars):Advertising ________Purchasing ________
What will be an ideal response?
Advertising $92,160 + $69,120 + $80,640 = $241,920 total sales
($92,160/$241,920) * $10,000 = $3,810
| Purchasing | 1,260 + 1,680 + 2,310 = 5,250 purchase orders |
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