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 $40,000 Number of employees Depreciation Advertising 26,000 Cost of goods sold 60,000 Net sales Item Drilling Grinding Total Number of employees 1,800 2,700 4,500 Net sales $352,000 $528,000 $880,000 Cost of goods sold $110,200 $179,800 $290,000 The amount of depreciation that should be allocated to Grinding for the current period is:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Multiple Choice
$37,200.
$26,000.
$16,120.
$60,000.
$9,880.
Transcribed Image Text:Multiple Choice $37,200. $26,000. $16,120. $60,000. $9,880.
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
$40,000
Number of employees
Depreciation
Advertising
26,000
Cost of goods sold
60,000
Net sales
Item
Drilling Grinding
Total
Number of employees
1,800
2,700
4,500
Net sales
$352,000 $528,000 $880,000
Cost of goods sold
$110,200 $179,800 $290,000
The amount of depreciation that should be allocated to Grinding for the current period is:
Multiple Choice
$37,200.
$26,000.
Transcribed Image Text: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 $40,000 Number of employees Depreciation Advertising 26,000 Cost of goods sold 60,000 Net sales Item Drilling Grinding Total Number of employees 1,800 2,700 4,500 Net sales $352,000 $528,000 $880,000 Cost of goods sold $110,200 $179,800 $290,000 The amount of depreciation that should be allocated to Grinding for the current period is: Multiple Choice $37,200. $26,000.
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