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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
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
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