Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $75,000...
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Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $75,000 and for Purchasing is $58,300. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders. Department Books Magazines Newspapers Total Sales $ 150,000 84,000 66,000 Purchase Orders 1,680 945 $ 300,000 875 3,500 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information. Office. Allocation Base Department Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Books Magazin Newspapers Totals Purchasing Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Magazines: Newspapers Totals Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $75,000 and for Purchasing is $58,300. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders. Department Books Magazines Newspapers Total Sales $ 150,000 84,000 66,000 Purchase Orders 1,680 945 $ 300,000 875 3,500 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information. Office. Allocation Base Department Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Books Magazin Newspapers Totals Purchasing Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Magazines: Newspapers Totals
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