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 Salaries $ 30,000 20,000 40,000 Depreciation Advertising Department Drilling Grinding Total Allocation Base Number of employees Cost of goods sold Percentage of total sales Multiple Choice Number of employees 1,000 1,500 2,500 Sales. $ 325,000 475,000 $ 800,000 Cost of goods sold $ 75,000 125,000 $ 200,000 The amount of depreciation 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 operating departments using different allocation bases. The following information is available for the current period: Office Expenses Total Salaries $ 30,000 20,000 40,000 Depreciation Advertising Department Drilling Grinding Total Allocation Base Number of employees Cost of goods sold Percentage of total sales Multiple Choice Number of employees 1,000 1,500 2,500 Sales. $ 325,000 475,000 $ 800,000 Cost of goods sold $ 75,000 125,000 $ 200,000 The amount of depreciation that should be allocated to Drilling 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 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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COMPUTING OPERATING INCOME The sales, cost of goods sold, and total operating expenses of departments A and B of Ash Company are as follows: Compute the departmental operating income for each department.
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 curfent period: office Expenses Salaries Depreciation Advertising Item Number of employees Net sales Cost of goods sold Multiple Choice O The amount of the advertising cost that should be allocated to Grinding for the current period is: O O $24,400 $68.000 $36.600 $360.000 Total $46,000 27,000 61,000 $81,000. Allocation Basis Number of employees Cost of goods sold Net sales Drilling Grinding Total 1,200 1,800 3,000 $360,000 $540,000 $900,000 $114,000 $186,000 $300,000
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 Office Expenses Salaries Total $ 31,000 Depreciation Advertising 21,000 41,000 Cost of goods sold Percentage of total sales Department Number of employees Drilling Grinding Total 800 1,200 2,000 $ 79,800 130,200 $ 210,000 The amount of depreciation that should be allocated to Grinding for the current period is: Sales $ 330,000 Cost of goods sold 495,000 $ 825,000
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 Salaries Depreciation Advertising Department Drilling Grinding Total Total $ 38,000 24,000 52,000 Number of employees 1,640 2,460 4,100 Allocation Basis Number of employees Cost of goods sold Percentage of total sales Sales $338,000 494,000 $832,000 Cost of goods sold $87,000 145,000 $232,000 The amount of the total office expenses that should be allocated to Grinding for the current period is (Do not round your intermediate calculations.)
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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:
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 Salaries Total Allocation Basis Number of employees $ 40,000 Depreciation Advertising 26,000 60,000 Cost of goods sold Percentage of total sales Department Number of employees Drilling Grinding 1,800 2,700 Sales $ 352,000 528,000 Cost of goods sold $ 110,200 179,800 Total 4,500 $ 880,000 $ 290,000 The amount of the advertising cost that should be allocated to Grinding 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 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. A company produced 195 units of Product L and 182 units of Product M during the current period and incurred joint costs of $900. Product L sells for $8 per unit and Product M sells for $20 per unit. Compute the cost to be allocated to Product M for this…
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 Salaries $ 39,000 Allocation Basis Number of employees Depreciation 29,000 Cost of goods sold Advertising 68,000 Percentage of total sales Department Number of employees Drilling Grinding Total 1,800 2,700 4,500 Sales $368,000 552,000 $ 920,000 Cost of goods sold $ 121,600 198,400 $ 320,000 The amount of salaries that should be allocated to Grinding for the current period is:
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