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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
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 Books, Magazines Newspapers Total Sales $ 143,500 Purchase Orders 1,440. 70,000 756 136,500 $ 350,000 1,404 3,600 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 es 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
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