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Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $26,700 and for Purchasing is $46,700. Expenses for the
Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $26,700 and for Purchasing is $46,700. 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 Sales $ 180,400 Purchase Orders 1,290 123,000 690 Total 106,600 $410,000 1,020 3,000 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 Department Numerator Denominator % of Total Books Magazines Newspapers Totals Cost to be Allocated Allocated Cost 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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