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Exercise 22-3(Static) Service department expenses allocated to operating departments LO P2 Lucia Company...

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Accounting

Exercise 22-3(Static) Service department expenses allocated to operating departments LO P2
Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is $24,000 and for Purchasing is $34,000. Expenses for the Office are allocated to operating departments based on sales. Expenses for Purchasing are allocated to operating departments based on purchase orders.
\table[[,,Purchase],[Department,Sales,Orders],[Books,$495,000,516],[Magazines,198,000,360],[Newspapers,207,000,324],[Total,$900,000,1,200]]
Allocate the expenses from (a) the Office and (b) Purchasing to each of the company's three operating departments using the given information.
\table[[Office,Allocation Base,Percent of Allocation Base,Cost to be Allocated,Allocated Cost],[Department,,Numerator,Denominator,% of Total,],[Books,,,,,],[Magazines,,,,,],[Newspapers,,,,,],[Totals,,,,,],[,,,,,],[Purchasing,Allocation Base,,,,]]
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