Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $57,800...

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Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $57,800 and for Purchasing is $57,800. 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 Sales $ 184,900 Purchase Orders 816 107,500 137,600 476 Total $ 430,000 408 1,700 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 Department Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Books Magazines Newspapers Totals Purchasing Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Magazines Newspapers Totals Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Square Feet Asset Values Employees Materials 20 40,000 Personnel 10 10,000 $ 14,000 1,400 Manufacturing Packaging 40 120,000 35,000 30 Total 100 30,000 200,000 19,600 $ 70,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Insurance Total Cost $ 83,500 Number of employees Allocation Base 60,000 Square feet occupied 27,500 Asset values. $ 171,000 Allocate each of the three indirect expenses to the four departments. Supervision expenses Department Materials Personnel Manufacturing Packaging Totals Utilities Department Materials Personnel Manufacturing Packaging Totals Insurance Department Materials Personnel Manufacturing Packaging Totals Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $57,800 and for Purchasing is $57,800. 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 Sales $ 184,900 Purchase Orders 816 107,500 137,600 476 Total $ 430,000 408 1,700 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 Department Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Books Magazines Newspapers Totals Purchasing Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Books Magazines Newspapers Totals Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Square Feet Asset Values Employees Materials 20 40,000 Personnel 10 10,000 $ 14,000 1,400 Manufacturing Packaging 40 120,000 35,000 30 Total 100 30,000 200,000 19,600 $ 70,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Insurance Total Cost $ 83,500 Number of employees Allocation Base 60,000 Square feet occupied 27,500 Asset values. $ 171,000 Allocate each of the three indirect expenses to the four departments. Supervision expenses Department Materials Personnel Manufacturing Packaging Totals Utilities Department Materials Personnel Manufacturing Packaging Totals Insurance Department Materials Personnel Manufacturing Packaging Totals Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Allocation Base Percent of Allocation Base Numerator Denominator % of Total Cost to be Allocated Allocated Cost Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total

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To allocate the expenses from the Office and Purchasing departments to each of the companys three op... View the full answer