ALLOCATING OPERATING EXPENSEPURCHASE ORDERS The purchasing department of Stokes Company performs the purchasing function for the entire business. The numbers of purchase orders processed during the most recent month are as follows:West Division: ..29 purchase ordersEast Division: 37 purchase ordersCentral Division: ..34 purchase ordersThe monthly cost of operating the purchasing department, including personnel, was $30,000.Allocate the cost of the purchasing department using the number of purchase orders processed as an allocation base.
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