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 $31,600 and for Purchasing is $63,300. 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 Sales $ 200,000 Purchase Orders: 552 Magazines Newspapers Total 84,000 348 116,000 300 $ 400,000 1,200 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 5 Books Magazines Newspapers Totals Purchasing Department Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Books Magazines Newspapers Totals