Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $85,600 and for Purchasing is $51,400. 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 Total Sales $ 193,200 109, 200 117,600 $ 420,000 Purchase Orders 1,551 693 1,056 3,300 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information
Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $85,600 and for Purchasing is $51,400. 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 Total Sales $ 193,200 109, 200 117,600 $ 420,000 Purchase Orders 1,551 693 1,056 3,300 Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 22-3 (Algo) Service department expenses allocated to operating departments LO P2
Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $85,600 and for Purchasing is
$51.400. 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
Total
Office
Department
Books
Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given
Information
Magazines
Newspapers
Totals
Purchasing
Department
Books
Sales
$ 193,200
109,200
117,600
$ 420,000
Magazines
Newspapers
Allocation Base
Purchase
Orders
1,551
693
1,056
3,300
Allocation Base
Percent of Allocation Base
Numerator Denominator % of Total
0
0
0
0
Percent of Allocation Base
Numerator Denominator % of Total
Prev
0
0
0
Cost to be Allocated Allocated Cost
Cost to be Allocated Allocated Cost
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