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 $ 54,000 Number of employees Cost of goods sold Salaries Depreciation Advertising 36,000 70,000 Net sales Item Drilling Grinding Total Number of employees 2,000 $390,000 $585,000 $975,00e $148, 200 $241,800 $390,000 3,000 5,000 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 $ 54,000 Number of employees Cost of goods sold Salaries Depreciation Advertising 36,000 70,000 Net sales Item Drilling Grinding Total Number of employees 2,000 $390,000 $585,000 $975,00e $148, 200 $241,800 $390,000 3,000 5,000 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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Denger
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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 operating departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Base Salaries $ 30,000 Number of employees Depreciation 20,000 Cost of goods sold Advertising 40,000 Percentage of total sales Department Number of employees 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 salaries that should be allocated to Grinding for the current period is:
Gadubhai
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