Asked by Bethany Cheek on Apr 28, 2024

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Arkansas Toys,a retail store,has three sales departments supported by two service departments.Cost and operational data for each department follow:
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 ________
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.
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ZK
Zybrea KnightMay 04, 2024
Final Answer :
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
(1,260/5,250) * $12,000 = $2,880