Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to thetwo departments using different allocation bases. The following informationavailable for the current period:Office ExpensesTotalAllocation Basis$ 50,000Number of employeesCost of goods soldSalariesDepreciationAdvertising34,00068,000Net salesItemDrilling GrindingTotalNumber of employees1,800$388,000 $582,000 $970, 000$140,600 $229,400 $370, 0002,7004,500Net salesCost of goods soldThe amount of the total office expenses that should be allocated to Drilling for the current period is:

Office Expenses Overhead Cost Driver Activity Rate Actual Level of Cost Driver for Drilling Assigned…

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 $ 50,000 Number of employees Depreciation Advertising 34,000 Cost of goods sold 68,000 Net sales Drilling Grinding 1,800 $388,000 $582,000 $970, 000 $140,600 $229,400 $370, 000 Item Total Number of employees 2,700 4,500 Net sales Cost of goods sold The amount of the total office expenses that should be allocated to Drilling for the current period is:

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 $ 50,000 Number of employees Depreciation Advertising 34,000 Cost of goods sold 68,000 Net sales Drilling Grinding 1,800 $388,000 $582,000 $970, 000 $140,600 $229,400 $370, 000 Item Total Number of employees 2,700 4,500 Net sales Cost of goods sold The amount of the total office expenses that should be allocated to Drilling for the current period is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office exApenses are alocated to the tavo opertng cene different allocatlon bases. The following Information is avallable for the current period: Office Expenses Salaries Total Allocation Basis Number of employees 44,000 Depreciation Advertising 21,000 Cost of goods Bold 44,000 Percentage of total sales Department Drilling Grinding Number of employees Sales Cost of goods sold 900 $ 350,000 $ 91,200 2,100 525,000 148,800 Total 3,000 $ 875,000 $ 240,000 The amount of depreciation that should be allocated to Drilling for the current period is: Multiple Choice $7,980. $13,020. $21,000. 8 of 25
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