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Ch 09 Ex 9-3 A Saved Help Save & E Ches 1 Exercise 9-3 (Algo) Service department expenses allocated to operating departments LO P2 Lucia
Ch 09 Ex 9-3 A Saved Help Save & E Ches 1 Exercise 9-3 (Algo) Service department expenses allocated to operating departments LO P2 Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $47,500 and for Purchasing is $27,100. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders. 10 points eBook Department Books Magazines Newspapers Total Sales $ 166,600 78,200 95, 200 $ 340,000 Purchase Orders 880 660 660 2,200 Hint Ask Print Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information. References Office Cost to be Allocated Allocated Cost Department Books Magazines Newspapers Totals Allocation Base Percent of Allocation Base Sales Numerator Denominator % of Total $ 166,600 $ 880 0 0 78,200 660 0 95,200 660 0 0 340,000 0 0 Allocation Base Cost to be Allocated Allocated Cost Purchasing Department Books Percent of Allocation Base Numerator Denominator % of Total 0 0 Magazines Newspapers 0 0 Totals 0 0 Mr
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