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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
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 | Sales | Purchase Orders |
---|---|---|
Books | $ 184,900 | 816 |
Magazines | 107,500 | 476 |
Newspapers | 137,600 | 408 |
Total | $ 430,000 | 1,700 |
Allocate the expenses from (a) the Office and (b) Purchasing to each of the companys three operating departments using the given information.
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