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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
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 Salaries Depreciation Advertising Total $52,000 Allocation Basis Number of employees 37,000 Cost of goods sold 75,000 Net sales Item Drilling Grinding Total Number of employees 1,600 2,400 4,000 Net sales Cost of goods sold $400,000 $600,000 $1,000,000 $152,000 $248,000 $ 400,000 The amount of the advertising cost that should be allocated to Drilling for the current period is: The amount of the advertising cost that should be allocated to Drilling for the current period is: Multiple Choice $30,000. $100,000. $45,000. $400,000 $30,000. O $100,000 $45,000 $400,000. $111,800
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