Question
accounting 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
accounting
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. Department Sales Purchase Orders Books $ 193,200 1,551 Magazines 109,200 693 Newspapers 117,600 1,056 Total $ 420,000 3,300 Allocate the expenses from (a) the Office and (b) Purchasing to each of the companys three operating departments using the given information.
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