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Exercise 24-3 (Algo) Service department expenses allocated to operating departments LO P2 Lucia Company has two service departments: Office and Purchasing. Total expenses for
Exercise 24-3 (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 $57,800 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 Books Magazines Newspapers Total Purchase Sales $184,900 Orders 816 107,500 476 137,600 $430,000 408 1,700 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. Office Allocation Base Department Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost 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
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