Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $60,100 and for Purchasing is $43,000. 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 Вooks Magazines Newspapers Sales $ 163,800 97,500 128,700 $ 390,000 Purchase Orders 984 648 768 Total 2,400 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information. Percent of Allocation Base Cost to be Allocated Office Allocation Base Allocated Cost Department Numerator Denominator % of Total Вooks Magazines Newspapers Totals Purchasing Percent of Allocation Base Cost to be Allocated Allocation Base Allocated Cost Department Numerator Denominator % of Total Books Magazines Newspapers Totals

Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $60,100 and for Purchasing is $43,000. 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 Вooks Magazines Newspapers Sales $ 163,800 97,500 128,700 $ 390,000 Purchase Orders 984 648 768 Total 2,400 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information. Percent of Allocation Base Cost to be Allocated Office Allocation Base Allocated Cost Department Numerator Denominator % of Total Вooks Magazines Newspapers Totals Purchasing Percent of Allocation Base Cost to be Allocated Allocation Base Allocated Cost Department Numerator Denominator % of Total Books Magazines Newspapers Totals

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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