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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

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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 $85,600 and for Purchasing is $51,400. 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 $ 193,200 Purchase Orders 1,551 109,200 117,600 $420,000 693 1,056 3,300 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information. Office Department Allocation Base Sales Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Books 0 Magazines 0 Newspapers 0 Totals 0 Purchasing Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Number of orders Numerator Denominator % of Total Books 0 Magazines 0 Newspapers 0 Totals 0

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