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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 Total Allocation Basis Salaries $ 42,000 Number of employees Depreciation 22,000 Cost of goods sold Advertising 45,000 Net sales
Item Drilling Grinding Total Number of employees 1,200 1,800 3,000 Net sales $ 340,000 $ 510,000 $ 850,000 Cost of goods sold $ 95,000 $ 155,000 $ 250,000
The amount of the total office expenses that should be allocated to Drilling for the current period is:
Multiple Choice
$71,600.
$43,160.
$109,000.
$600,000.
$53,000.
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 | $ | 42,000 | Number of employees | ||||||||
Depreciation | 22,000 | Cost of goods sold | |||||||||
Advertising | 45,000 | Net sales | |||||||||
Item | Drilling | Grinding | Total | ||||||
Number of employees | 1,200 | 1,800 | 3,000 | ||||||
Net sales | $ | 340,000 | $ | 510,000 | $ | 850,000 | |||
Cost of goods sold | $ | 95,000 | $ | 155,000 | $ | 250,000 | |||
The amount of the total office expenses that should be allocated to Drilling for the current period is:
Multiple Choice
$71,600.
$43,160.
$109,000.
$600,000.
$53,000.
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