Question

Drilling Grinding Total Number of employees 1,800 2,700 4,500 Net sales $ 352,000 $ 528,000 $ 880,000 Cost of goods sold $ 110,200 $ 179,800 $ 290,000 The amount of the total office expenses that should be allocated to Drilling for the current period is:

Answer 1

Answer:

$49,880

Explanation:

Calculation to determine The amount of the total office expenses that should be allocated to Drilling for the current period is:

First step

Salaries=$40,000×1,800/4500= $16,000

Depreciation=$26,000×$110,200/$290,000= $9,880

Advertising=$60,000×$352,000/$880,000= $24,000

Now let determine the Total office expenses

Total office expenses=$16,000+$9,880+$24,000

Total office expenses=$49,880

Therefore The amount of the total office expenses that should be allocated to Drilling for the current period is:$49,880