Question
Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $31,600 and for Purchasing is $63,300. Expenses for the
Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $31,600 and for Purchasing is $63,300. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders. Sales $200,000 Purchase Department Books Orders 552 Magazines Newspapers Total 84,000 110,000 348 300 $ 400,000 1,200 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information.
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