Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is...
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Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $71,000 and for Purchasing is $78,900. 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
Sales
Purchase Orders
Books
$ 201,600
1,225
Magazines
92,400
725
Newspapers
126,000
550
Total
$ 420,000
2,500
Allocate the expenses from (a) the Office and (b) Purchasing to each of the companys three operating departments using the given information.
Lucia Company has two service departments: Office and Purchashy. Total expenses for the Office is $71,000 and for Purchasing is \$78,900. Expenses for the Onfice are allocated to operating departments based on sales. Experses for Purchasing are atocated to operating departments based on purchase orders. Allocate the expenses from (a) the Office and fit Purchasing to each of the company's three operating departments using the given information
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