Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of officeexpenses are allocated to the two operating departments using different allocation bases. The following information isavailable for the current period:Office Expenses TotalAllocation BasisSalaries$39,000Number of employeesDepreciation 29,000Cost of goods soldAdvertising 68,000 Percentage of total salesDepartment Number of employees Sales Cost of goods soldDrilling 1,800$368,000$ 121,600Grinding 2,700552,000 198,400Total4,500$920,000 $320,000The amount of the advertising cost that should be allocated to Drilling for the current period is:Multiple Choice$27,200.$82,600.$40,800.$368,000.$86,200.A company produced 195 units of Product L and 182 units of Product M during the current period and incurred joint costsof $900. Product L sells for $8 per unit and Product M sells for $20 per unit. Compute the cost to be allocated to ProductM for this period's joint costs if the value basis is used.Multiple Choice$270.$630.$450.$1,730.$1,020.Canfield Technical School allocates administrative costs to its respective departments based on the number of studentsenrolled, while maintenance and utility costs are allocated based on the square footage of each department's classroom.Based on the information below, what is the total amount of maintenance cost to the Carpentry Department (rounded tothe nearest dollar) if administrative costs for the school were $69,000, maintenance fees were $17,000, and utilities were$6,500?Department Students Classroom Square FeetElectrical 12010,250Welding 9016,400Accounting 608,200Carpentry 306,150300 41,000TotalMultiple Choice$1,700.$17,000.$1,003.$2,550.$3,550.

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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 Basis Salaries $ 39,000 Number of employees Depreciation 29,000 Cost of goods sold Advertising 68,000 Percentage of total sales Department Number of employees Sales Cost of goods sold Drilling 1,800 $368,000 $121,600 Grinding 2,700 552,000 198,400 Total 4,500 $920,000 $320,000 The amount of the advertising cost that should be allocated to Drilling for the current period is: Multiple Choice $27,200. $82,600. $40,800. $368,000. $86,200.

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 $ 39,000 Number of employees Depreciation 29,000 Cost of goods sold Advertising 68,000 Percentage of total sales Department Number of employees Sales Cost of goods sold Drilling 1,800 $368,000 $121,600 Grinding 2,700 552,000 198,400 Total 4,500 $920,000 $320,000 The amount of the advertising cost that should be allocated to Drilling for the current period is: Multiple Choice $27,200. $82,600. $40,800. $368,000. $86,200.

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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