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The purchasing department of Lorenzo Corporation operates as a service department. The number of purchase orders processed during the most recent month are as follows:
The purchasing department of Lorenzo Corporation operates as a service department. The number of purchase orders processed during the most recent month are as follows:
Eastern Division | 83 purchase orders |
Central Division | 48 purchase orders |
Western Division | 29 purchase orders |
The monthly cost of operating the purchasing department, including personnel, amounted to $50,000.
Allocate the cost of the purchasing department using the number of purchase orders as an allocation base.
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