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 $ 53,000 31,500 74,500 Number of employees 2,840 4,260 7,100 Allocation Basis Number of employees Cost of goods sold Percentage of total sales. Sales $362,375 529,625 $892,000 Cost of goods sold $109,500 182,500 $292,000 The amount of the total office expenses that should be allocated to Grinding for the current period is (Do not round your intermediate calculations.)
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 $ 53,000 31,500 74,500 Number of employees 2,840 4,260 7,100 Allocation Basis Number of employees Cost of goods sold Percentage of total sales. Sales $362,375 529,625 $892,000 Cost of goods sold $109,500 182,500 $292,000 The amount of the total office expenses that should be allocated to Grinding for the current period is (Do not round your intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:TB MC Qu. 22-89 (Algo) Marks Corporation has two...
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
Multiple Choice
Total
$ 53,000
31,500
74,500
Number of employees
2,840
4,260
7,100
$159,000.
Allocation Basis
Number of employees
Cost of goods sold
Percentage of total sales
Sales
$362,375
529,625
$892,000
The amount of the total office expenses that should be allocated to Grinding for the current period is (Do not round your intermediate calculations.)
Cost of goods sold
$109,500
182,500
$292,000
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