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Marks Corporation has two operating departments Drilling a

Management Nov 25, 2020

Marks Corporation has two operating departments Drilling a. Grinding, and an office. The three categories Moltke expenses are allocated to Me two departments using different allocation bases. The following information is available for Me current period: 
Office Expenses Total Allocation Basis Salaries $30,000 Number of employees Depreciation 20,000i of goods sold Advertising 40,000 Net sales 
Item Drilling Grinding Total Number of employees 1,000 1,500 2,500 Net sales 1325,000 1475,000 1000,000 Cost of goods sold $ 75,000 $125,000 $200,000 
The amount of the total office expenses that should be allocated to Drilling for the current period is: Multiple Choice 
0 $.1300. 0 $3S3SO. 0 $ 90,000. 0 $ 54,2sa 
OEsoo,000. 

 

A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $120,000, antl the following quantifies of product and sales revenues were produced. 
product pounds price per pound Feed 100,000 $0.70 Flour 50,000 2.20 Starch 20,000 1.00 
How moth of the $120,000 cost should he allocated to feed if the value basis is used? MuMpleChoice 
0 $45,000. 0 $100,000. 570,000. 0 $ 42,000. 0 $12250. 

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