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Exercise 22-3 (Algo) Service department expenses allocated to operating departments LO P2 Lucia Company has two service departments: Office and Purchasing. Total expenses for the

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Exercise 22-3 (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 $43,400 and for Purchasing is $57,800. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders. Allocate the expenses from (a) the Office and (b) Purchasing to each of the compary's three operating departments using the given information. \begin{tabular}{|l|l|l|l|l|l|l|} \hline Office & Allocation Base & \multicolumn{2}{|c|}{ Percent of Allocation Base } & Cost to be Allocated Allocated Cost \\ \hline Department & & Numerator & Denominator & % of Total & \\ \hline Books & & & & & & \\ \hline Magazines & & & & & \\ \hline Newspapers & & & & & \\ \hline Totals & & & & & \\ \hline & & Allocation Base & Percent of Allocation Base & Cost to be Allocated & Allocated Cost \\ \hline Purchasing & & Numerator & Denominator & % of Total & \\ \hline Department & & & & & \\ \hline Books & & & & & \\ \hline Magazines & & & & \\ \hline Newspapers & & & & \\ \hline Totals & & & & \\ \hline \end{tabular}

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