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.

Department	Sales	Purchase Orders
Books	$ 175,000	984
Magazines	105,000	672
Newspapers	70,000	744
Total	$ 350,000	2,400

Allocate the expenses from (a) the Office and (b) Purchasing to each of the companys three operating departments using the given information.

Office Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Magazines Newspapers Totals Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Purchasing Department Numerator Denominator % of Total Books Magazines Newspapers Totals