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Marcus Company has two service departments: Office and Purchasing. Total expenses for the Office is $67,000 and for Purchasing is $87,000. Expenses for the Office
Marcus Company has two service departments: Office and Purchasing. Total expenses for the Office is $67,000 and for Purchasing is $87,000. 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 Multiple Choice Expenses allocated from the Purchasing department to the company's Newspaper department are: O $41,580. O $26,100. Sales $ 1,094,500 437,800 457,700 $ 1,990,000 O $37,410. O O $23,490. Purchase Orders $18,090. 1,849 1,290 1,161 4,300
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