Expenses allocated from the Purchasing department to the company’s Newspaper department are:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Marcus Company has two service departments: Office and Purchasing. Total expenses for the Office is $60,000 and for Purchasing is $80,000. 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 $ 1,056,000 1,548
Magazines 422,400 1,080
Newspapers 441,600 972
Totals $ 1,920,000 3,600


Expenses allocated from the Purchasing department to the company’s Newspaper department are: 

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