Check m 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: Allocation Basis Number of employees Cost of goods sold Percentage of total sales Office Expenses Salaries Depreciation Total $ 40,000 26,000 Advertising 60,000 ' Department Number of employees Drilling 1,800 Grinding 2,700 Sales $ 352,000 528,000 Total 4,500 $ 880,000 Cost of goods sold $ 110,200 179,800 $ 290,000 The amount of salaries that should be allocated to Grinding for the current period is:

Check m 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: Allocation Basis Number of employees Cost of goods sold Percentage of total sales Office Expenses Salaries Depreciation Total $ 40,000 26,000 Advertising 60,000 ' Department Number of employees Drilling 1,800 Grinding 2,700 Sales $ 352,000 528,000 Total 4,500 $ 880,000 Cost of goods sold $ 110,200 179,800 $ 290,000 The amount of salaries that should be allocated to Grinding for the current period is:

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 24E: Refer to the data in Exercise 7.22. The support departments are ranked in order of highest cost to...

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TB MC Qu. 09-92 (Algo) Marks Corporation has two operating... 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 Total Allocation Basis Salaries $ 31,000 Number of employees Depreciation 21,000 Cost of goods sold Advertising 41,000 Percentage of total sales Department Number of employees Sales Cost of goods sold Drilling 800 $ 330,000 $ 79,800 Grinding 1,200 495,000 130, 200 Total 2,000 $ 825,000 $ 210,000 The amount of the advertising cost that should be allocated to Grinding for the current period is:
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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 different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $42,000 Number of employees Depreciation Advertising 26,000 Cost of goods sold 58,000 Net sales Item Drilling Grinding Total Number of employees 1,960 $344,500 $ 93,000 4,900 $848,000 $248,000 2,940 $503,500 $155,000 Net sales Cost of goods sold The amount of the total office expenses that should be allocated to Grinding for the current period is (Do not round your intermediate calculations.)