Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories ofoffice expenses are allocated to the two operating departments using different allocation bases. The followinginformation is available for the current period:Office ExpensesSalariesDepreciationAdvertisingDepartmentDrillingGrindingTotalTotal$ 38,00024,00052,000Number of employees1,6402,4604,100Allocation BasisNumber of employeesCost of goods soldPercentage of total salesSales$338,000494,000$832,000Cost of goods sold$87,000145,000$232,000The amount of the total office expenses that should be allocated to Grinding for the current period is (Do not roundyour intermediate calculations.)

Name: Marks Corporation has two operating departments, Drilling and Grindin
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Description: Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories ofoffice expenses are allocated to the two operating departments using different allocation bases. The followinginformation is available for

An organization having more than one department follows departmental costing. Cost related to each…

Answered: The amount of the total office expenses…

Business

Accounting

The amount of the total office expenses that should be allocated to Grinding for the current period is (Do not round our intermediate calculations.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

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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