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Service department expenses allocated to operating departments Exercise 22-3 (Algo) Service department expenses allocated to operating departments LO P2 Lucia Company has two service departments:
Service department expenses allocated to operating departments
Exercise 22-3 (Algo) Service department expenses allocated to operating departments LO P2 Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $57,200 and for Purchasing is $45,800. 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 $ 167,200 76,000 136,800 $ 380,000 Purchase Orders 1,290 900 810 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. Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Office Department Books Magazines Newspapers Totals Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Purchasing Department Books Magazines Newspapers TotalsStep by Step Solution
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