6- The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication.

	Purchasing				Maintenance				Fabrication				Assembly
Operating costs	$	32,000			$	18,000			$	96,000			$	62,000
No. of purchase orders										16				4
Sq. ft. of space										3,300				2,700

Multiple Choice

• $6,400.

• $9,900.

• $8,100.

• $9,000.

• $25,600.

16- Wren Pork Company uses the value basis of allocating joint costs in its production of pork products. Relevant information for the current period follows:

Product		Pounds		Price/lb.
Loin chops		3,000		$	5.00
Ground		10,000			2.00
Ribs		4,000			4.75
Bacon		6,000			3.50

The total joint cost for the current period was $43,000. How much of this cost should Wren Pork allocate to Loin chops?

Multiple Choice

• $0.

• $5,909.

• $8,600.

• $10,750.

• $43,000.

18- Marks 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	$	30,000			Number of employees
Depreciation		20,000			Cost of goods sold
Advertising		40,000			Net sales

Item	Drilling				Grinding				Total
Number of employees		1,000				1,500				2,500
Net sales	$	325,000			$	475,000			$	800,000
Cost of goods sold	$	75,000			$	125,000			$	200,000