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Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $25,300 and for Purchasing is $20,200. Expenses for the
Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $25,300 and for Purchasing is $20,200. 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 Purchase Orders $ 182,400 87,400 110,200 1,025 625 $ 380,000 850 2,500 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given Information. Office Allocation Base Department Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Books Magazines Newspapers Totals Purchasing Department Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Books Magazines Newspapers Totals
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