Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 ExpensesTotalAllocation BasisSalaries$30,000Number of employeesDepreciation20,000Cost of goods soldAdvertising40,000Net sales

ItemDrillingGrindingTotalNumber of employees1,0001,5002,500Net sales$325,000$475,000$800,000Cost of goods sold$75,000$125,000$200,000

The amount of the advertising cost that should be allocated to Drilling for the current period is:

A. $16,250

B. $45,000

C. $23,750

D. $325,000

E. $54,250

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jeffrey Waybright, Robert Kemp

1st Edition

013606048X, 9780136060482

More Books

Students also viewed these Accounting questions

Question

3. What is my goal?

Answered: 1 week ago

Question

2. I try to be as logical as possible

Answered: 1 week ago