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Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $71,000 and for Purchasing is $78,900. Expenses for the
Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $71,000 and for Purchasing is $78,900. 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 $ 201,600 Purchase Orders 1,225 92,400 126,000 725 $ 420,000 550 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 Allocation Base Department Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Books Magazines Newspapers Totals
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