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Marcus Company has two service departments: Office and Purchasing. Total expenses for the Office is $48,000 and for Purchasing is $68,000. Expenses for the Office
Marcus Company has two service departments: Office and Purchasing. Total expenses for the Office is $48,000 and for Purchasing is $68,000. 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 Sales $ 990,000 396,000 414,000 $ 1,800,000 Purchase Orders 1,032 720 648 Totals 2,400 Expenses allocated from the Office Department to the company's Magazines Department are: Expenses allocated from the Office Department to the company's Magazines Department are: Multiple Choice $11,040. O O $26,400. (0) $10,560. O $14,960. C $25,520
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