Question

Arkansas Toys, a retail store, has three sales departments supported by two service departments. Cost and operational data for each department follow:
Purch.
Sales Cost of Square Orders
Department Sales Goods Sold Footage Issued
1 $92,160 $36,864 1,728 1,260
2 69,120 32,832 3,024 1,680
3 80,640 32,256 1,296 2,310

Service


Departments Allocation Basis Cost
Advertising"u00a6"u00a6"u00a6.. Sales $10,000
Purchasing"u00a6"u00a6"u00a6... No. of purchase orders issued 12,000

Determine the service department expenses to be allocated to Sales Department 1 for (round answers to whole dollars):
Advertising ___________________
Purchasing ___________________

Answer

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