Marks Corporation has two operating departments, Drilling and Grinding, and an o
ID: 2468856 • Letter: M
Question
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:
The amount of the total office expenses that should be allocated to Grinding for the current period is (Do not round your intermediate calculations.)
$56,204.
$600,000.
$84,904.
$141,000.
$65,454.
Office Expenses Total Allocation Basis Salaries $47,000 Number of employees Depreciation 28,500 Cost of goods sold Advertising 65,500 Net sales Item Drilling Grinding Total Number of employees 2,360 3,540 5,900 Net sales $352,625 $515,375 $868,000 Cost of goods sold $100,500 $167,500 $268,000Explanation / Answer
$84,904
Office Expenses Total $ Allocation Basis Drilling $ Grinding $ Salaries 47,000 Number of employees 18,800 28,200 Depreciation 28,500 Cost of goods sold 10,688 17,813 Advertising 65,500 Net sales 26,609 38,891 Total 1,41,000 56,097 84,903