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Exercise 9 - 3 ( Algo ) Service department expenses allocated to operating departments LO P 2 Lucia Company has two service departments: Office and

Exercise 9-3(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 $54,100 and for Purchasing is $33,800. 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 $ 143,5001,440
Magazines 70,000756
Newspapers 136,5001,404
Total $ 350,0003,600
Allocate the expenses from (a) the Office and (b) Purchasing to each of the companys three operating departments using the given information.Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $54,100 and for Purchasing is
$33,800. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to
operating departments based on purchase orders.
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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