$3$

Exercise $22-3($Algo$)$ Service department expenses allocated to operating departments LO P$2$

$4\mathrm{.}34$

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Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $\backslash (\backslash$$ $88,600\backslash )$ and for Purchasing is $\backslash (\backslash$$ $44,300\backslash ).$ Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders.

$\backslash$begin$\{$tabular$\}\{$lrc$\}$

Department & Sales & $\backslash$begin$\{$tabular$\}\{$c$\}$

Purchase $\backslash \backslash$

Orders

$\backslash$end$\{$tabular$\}\backslash \backslash$

Books & $\backslash (\backslash$$ $202,400\backslash )$ & $861\backslash \backslash$

Magazines & $123,200$ & $609\backslash \backslash$

Newspapers & $114,400$ & $630\backslash \backslash$

$\backslash$cline $\{2-3\}$ Total & $\backslash (\backslash$$ $440,000\backslash )$ & $2,100\backslash \backslash$

$\backslash$hline $\backslash$hline

$\backslash$end$\{$tabular$\}$

Allocate the expenses from $($a$)$ the Office and $($b$)$ Purchasing to each of the company's three operating departments using the given information.

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|$l$|$l$|\}$

$\backslash$hline Office & Allocation Base & $\backslash$multicolumn$\{3\}\{|$c$|\}\{$Percent of Allocation Base$\}$ & Cost to be Allocated & Allocated Cost $\backslash \backslash$

$\backslash$hline Department & & Numerator & Denominator & $\backslash \%$ of Total & $\backslash$multicolumn$\{2\}\{|$c$|\}\{\}\backslash \backslash$

$\backslash$hline Books & & & & & & $\backslash \backslash$

$\backslash$hline Magazines & & & & & & $\backslash \backslash$

$\backslash$hline Newspapers & & & & & & $\backslash \backslash$

$\backslash$hline Totals & & & & & & $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{7\}\{|$c$|\}\{\}\backslash \backslash$

$\backslash$hline Purchasing & Allocation Base & $\backslash$multicolumn$\{3\}\{|$c$|\}\{$Percent of Allocation Base$\}$ & Cost to be Allocated & Allocated Cost $\backslash \backslash$

$\backslash$hline Department & & Numerator & Denominator & $\backslash \%$ of Total & $\backslash$multicolumn$\{2\}\{|$c$|\}\{\}\backslash \backslash$

$\backslash$hline Books & & & & & & $\backslash \backslash$

$\backslash$hline Magazines & & & & & & $\backslash \backslash$

$\backslash$hline Newspapers & & & & & & $\backslash \backslash$

$\backslash$hline Totals & & $\backslash$multicolumn$\{3\}\{|$c$|\}\{\}$ & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$