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 curfent period office Expenses Salaries Depreciation Advertising Item Number of employees Net sales Cost of goods sold Multiple Choice O The amount of the advertising cost that should be allocated to Grinding for the current period is O O O O $24,400 $68.000. $36.600 $360.000 Total $46,000 27,000 61,000 $81,000. Allocation Basis Number of employees Cost of goods sold Net sales Drilling Grinding Total 1,200 1,800 3,000 $360,000 $540,000 $900,000 $114,000 $186,000 $300,000

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 curfent period office Expenses Salaries Depreciation Advertising Item Number of employees Net sales Cost of goods sold Multiple Choice O The amount of the advertising cost that should be allocated to Grinding for the current period is O O O O $24,400 $68.000. $36.600 $360.000 Total $46,000 27,000 61,000 $81,000. Allocation Basis Number of employees Cost of goods sold Net sales Drilling Grinding Total 1,200 1,800 3,000 $360,000 $540,000 $900,000 $114,000 $186,000 $300,000

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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