Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: Expense Rent

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: Expense Rent Advertising Administrative Basis for allocation Square feet of floor space Amount of dollar sales Number of employees Amount $24,000 $30,000 $ 45,000 The following information is available for its three operating (sales) departments: Department Square Feet 3,000 3,400 3,600 A Number of employees 6 8 Dollar Sales 280,000 300,000 420,000 $ $ B $ 10 Totals 10,000 $1,000,000 24 What is the total expense allocated to Department B? Multiple Choice $29,375. $30,462. $30,500. $30,775. $32,160. 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 $30,000 20,000 40,000 Allocation Basis Number of employees Cost of goods sold Net sales Item Number of employees Net sales Cost of goods sold Drilling 1,000 $325,000 $ 75,000 Grinding 1,500 $ 475,000 $ 125,000 Total 2,500 $800,000 $ 200,000 The amount of the total office expenses that should be allocated to Drilling for the current period is: Multiple Choice $35,750. $45,000. $54,250. $90,000 $600,000

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting

Authors: Charles E. Davis, Elizabeth Davis

2nd edition

1118548639, 9781118800713, 1118338448, 9781118548639, 1118800710, 978-1118338445

More Books

Students also viewed these Accounting questions