Exercise 22-3 (Static) Service department expenses allocated to operating departments LO P2 Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $24,000 and for Purchasing is $34,000. 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 Magazines Newspapers Total Office Department Books Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information. Magazines Newspapers Totals Sales $ 495,000 198,000 207,000 $ 900,000 Purchasing Department Books Magazines Purchase Orders Allocation Base 516 360 324 1,200 Allocation Base Percent of Allocation Base Numerator Denominator % of Total Percent of Allocation Base % of Total Numerator Denominator Cost to be Allocated Cost to be Allocated Allocated Cost Allocated Cost

Exercise 22-3 (Static) Service department expenses allocated to operating departments LO P2 Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $24,000 and for Purchasing is $34,000. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to opcrating departments based on purchase orders. Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information. Exercise 22-3 (Static) Service department expenses allocated to operating departments LO P2 Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $24,000 and for Purchasing is $34,000. 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 company's three operating departments using the given information. Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information