Asked by Bethany Cheek on Apr 28, 2024
Verified
Arkansas Toys,a retail store,has three sales departments supported by two service departments.Cost and operational data for each department follow:
Determine the service department expenses to be allocated to Sales Department 1 for (round answers to whole dollars):
Advertising ________
Purchasing ________
Service Department
A division within a company that provides support services to the company's main operations, such as IT, maintenance, or human resources.
Sales Department
The division of a business that is responsible for selling products or services and generating revenue.
Expense Allocation
The process of distributing or assigning costs to different departments, projects, or cost centers within an organization.
- Understand the principles and methodologies of cost allocation to various departments within a company.
Verified Answer
($92,160/$241,920)* $10,000 = $3,810
Purchasing 1,260 + 1,680 + 2,310 = 5,250 purchase orders
(1,260/5,250) * $12,000 = $2,880
Learning Objectives
- Understand the principles and methodologies of cost allocation to various departments within a company.
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