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2 -Ints Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $85,600 and for Purchasing is $51,400. Expenses
2 -Ints Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $85,600 and for Purchasing is $51,400. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders. eBook Department Books Magazines Newspapers Total Sales Purchase Orders $ 193,200 1,551 109,200 117,600 693 1,056 $ 420,000 3,300 Hint 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 Print Department Books Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Magazines References Newspapers Totals Purchasing Allocation Base Department Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Books Magazines Newspapers Totals
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