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Yanka [14]
3 years ago
12

Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses a

re allocated to the two departments using different allocation bases. The following information is available for the current period:
Office Expenses Total Allocation Basis
Salaries $ 30,000 Number of employees
Depreciation 20,000 Cost of goods sold
Advertising 40,000 Net sales
Item Drilling Grinding Total
Number of employees 1,000 1,500 2,500
Net sales $ 325,000 $ 475,000 $ 800,000
Cost of goods sold $ 75,000 $ 125,000 $ 200,000
a. The amount of salaries that should be allocated to Grinding for the current period is:
Multiple Choice:
1. $30,000.
2. $18,000.
3. $15,000.
4. $10,000.
5. $12,500.
Business
1 answer:
olganol [36]3 years ago
8 0

Answer:

2. $18,000

Explanation:

The computation of the  amount of salaries allocated to grinding is shown below:

= Total salaries × grinding number of employees ÷ total number of employees

= $30,000 × 1,500 employees ÷ 2,500 employees

= $18,000

Simply we find out the allocated amount based on the number of employees

All other information which is given is not relevant. Hence, ignored it

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