Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the twooperating departments using different allocation bases. The following information is available for the current period:Allocation BasisNumber of employeesOffice ExpensesSalariesTotal$ 31,000DepreciationAdvertising21,00041,000Cost of goods soldPercentage of total salesDepartmentNumber of employeesDrillingGrindingTotal8001,2002,000$ 79,800130,200$ 210,000The amount of depreciation that should be allocated to Grinding for the current period is:Sales$ 330,000Cost of goods sold495,000$ 825,000

Cost allocation:The allocation of costs for service departments is a crucial step in cost…

Answered: The amount of depreciation that should…

Business

Accounting

The amount of depreciation that should be allocated to Grinding for the current period is:

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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