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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 $268,000

Explanation / 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