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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 operating departments
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Office Expenses Salaries Depreciation Advertising Department Drilling Grinding Total Multiple Choice O O Number of employees 1,000 1,500 2,500 The amount of depreciation that should be allocated to Drilling for the current period is: $31,000. $40,300 Total $ 45,000 31,000 65,000 $11,780. $19,220 Allocation Basis Number of employees Cost of goods sold Percentage of total sales Minden Sales $376,000 564,000 $ 940,000 Cost of goods sold $ 129, 200 210, 800 $ 340,000 www Next
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