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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