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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 Office
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 Total Sales $ 180,400 123,000 106,600 $ 410,000 Purchase Orders 1,290 690 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 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 Cost to be Allocated Allocated Cost Department Books Percent of Allocation Base Numerator Denominator % of Total 0 0 Magazines Newspapers Totals 0 0 Purchasing Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total 0 Department Books Magazines 0 0 Newspapers 0 Totals
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