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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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