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Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $75,000 and for Purchasing is $58,300. Expenses for the
Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $75,000 and for Purchasing is $58,300. 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 Purchase Orders Sales $ 150,000 1,680 Magazines Newspapers Total 84,000 9451 66,000 875 $ 300,000 3,500 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 Books Magazines Newspapers Totals Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Purchasing Allocation Base Department Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Books Magazines Newspapers Totals:
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