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Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $ 5 7 , 8 0 0 and for Purchasing
Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $ and for Purchasing is
$ Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to
operating departments based on purchase orders.
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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