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Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $25,000 and for Purchasing is $56,200. Expenses for the Office

Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $25,000 and for Purchasing is $56,200. 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 Sales Purchase Orders
Books $ 186,200 546
Magazines 95,000 364
Newspapers 98,800 390
Total $ 380,000 1,300

Allocate the expenses from (a) the Office and (b) Purchasing to each of the companys three operating departments using the given information. image text in transcribed

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