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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
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 $25,300 and for Purchasing is $20,200. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders. Purchase Orders ok Department Books Magazines 87,400 Sales $ 1,025 182,400 625 t Newspapers 110,200 850 $ Total 2,500 380,000 t Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information. -nce Office Department Allocation Base Sales Cost to be Allocated Percent of Allocation Base % of Allocated Cost Numerator Denominator Total Books $ 182,400 0 Magazines 0 Newspapers 0 Totals 0 Allocation Cost to be Purchasing Percent of Allocation Base Base Number of Allocated Allocated Cost % of Department Numerator Denominator orders Total Books 0 Magazines 0 Newspapers 0 Totals 0
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