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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
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 $ 350,000 744 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. Office Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Magazines Newspapers Totals Purchasing Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Magazines Newspapers Totals 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 $ 350,000 744 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. Office Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Magazines Newspapers Floor space occupied Totals Number of orders Sales Purchasing ercent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Magazines Newspapers Totals ing departner purchase orders. Department Books Magazines Newspapers Total Purchase Sales Orders $ 175,000 984 105,000 672 70,000 $ 350,000 744 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. Office Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Magazines Newspapers Totals Purchasing Department Cost to be Allocation Base Percent of Allocation Base Allocated Cost Allocated Numerator Denominator % of Total Books Magazines Newspapers Floor space occupied Totals Number of orders Sales
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