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Marcus Company has two service departments: Office and Purchasing. Total expenses for the Office is $60,000 and for Purchasing is $80,000. Expenses for the Office
Marcus Company has two service departments: Office and Purchasing. Total expenses for the Office is $60,000 and for Purchasing is $80,000. 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 Totals Sales $ 1,056,000 422,400 441,600 $ 1,920,000 Purchase Orders 1,548 1,080 972 3,600 Expenses allocated from the Office Department to the company's Magazines Department are
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