Office Expenses Salaries Depreciation Advertising Department Drilling Grinding Total Multiple Choice $35,750. $45,000. $54,250. $90,000. Total $ 30,000 20,000 40,000 The amount of the total office expenses that should be allocated to Drilling for the current period is: Allocation Base Number of employees Cost of goods sold Percentage of total sales Number of employees 1,000 1,500 2,500 $600,000. Sales $ 325,000 475,000 $ 800,000 Cost of goods sold $ 75,000 125,000 $ 200,000
Office Expenses Salaries Depreciation Advertising Department Drilling Grinding Total Multiple Choice $35,750. $45,000. $54,250. $90,000. Total $ 30,000 20,000 40,000 The amount of the total office expenses that should be allocated to Drilling for the current period is: Allocation Base Number of employees Cost of goods sold Percentage of total sales Number of employees 1,000 1,500 2,500 $600,000. Sales $ 325,000 475,000 $ 800,000 Cost of goods sold $ 75,000 125,000 $ 200,000
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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