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34. Bison Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments
34.
Bison Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: office Expenses Total Allocation Basis Salaries $42,000 Number of employees Depreciation 30,000 Cost of goods sold Advertising 64,000 Net sales Item Number of employees Net sales Cont of goods sold Drilling Grinding Total 1,200 1,800 3,000 $370,000 $555,000 $925,000 $125,400 $ 204,600 $330,000 The amount of the advertising cost that should be allocated to Drilling for the current periodis: Multiple Choice $38.400 Step by Step Solution
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