Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $88,600...

Transcribed Image Text:

Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $88,600 and for Purchasing is $44,300. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders. Purchase Orders 861 Department Books Magazines Newspapers Sales $ 202,400 123,200 114,400 609 630 Total $ 440,000 2,100 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information. Office Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Department Books Magazines Newspapers Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Totals Purchasing Department Books Magazines Newspapers Totals Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $88,600 and for Purchasing is $44,300. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders. Purchase Orders 861 Department Books Magazines Newspapers Sales $ 202,400 123,200 114,400 609 630 Total $ 440,000 2,100 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information. Office Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Department Books Magazines Newspapers Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Totals Purchasing Department Books Magazines Newspapers Totals

Answer rating: 100% (QA)

The com... View the full answer