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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 $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 Books Magazines Newspapers Total Sales $ 175,000 Purchase Orders 984 105,000 672 70,000 744 $ 350,000 2,400 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information.
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