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storchak [24]
2 years ago
7

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 $48,000 Number of employees
Depreciation 24,000 Cost of goods sold
Advertising 47,000 Net sales
Item Drilling Grinding Total
Number of employees 1,200 1,800 3,000
Net sales $346,000 $519,000 $865,000
Cost of goods sold $102,600 $167,400 $270,000
The amount of the total office expenses that should be allocated to Drilling for the current period is:
a. $60,120.
b. $90,600.
c. $105,200.
d. $152,000.
e. $600,000.
Business
1 answer:
Ludmilka [50]2 years ago
5 0

Answer:

$44,377

Explanation:

Note: The answers (options) attached this question belongs to another question

Particulars                                                             Amount

Salaries ($48,000*1,200/3,500)                           $16,457

Depreciation ($24,000*$102,600/$270,000) $9,120

Advertising ($47,000*$346,000/$865,000) <u>$18,800</u>

Total                                                                       <u>$44,377</u>

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If the amount of "Cost of goods manufactured" during a period exceeds the amount of "Total manufacturing costs for the period, t
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Answer:

3. ending work in process is less than the amount of the beginning work in process inventory.

Explanation:

As we know that

Manufacturing cost = Cost of Goods Manufactured - Direct Labor - Direct Materials Used + Ending balance of Work-in-Process Inventory - the Opening balance of  Work-in-Process Inventory

And, the Manufacturing cost involves both cost i.e direct material and direct material used

If the cost of goods manufactured more than the total manufacturing costs, so automatically ending WIP inventory should be less then the beginning WIP inventory

6 0
3 years ago
Marigold Corp. manufactures a product with a unit variable cost of $100 and a unit sales price of $181. Fixed manufacturing cost
abruzzese [7]

Answer:

Increase in income= $20,000

Explanation:

Giving the following information:

Marigold Corp. manufactures a product with a unit variable cost of $100 and a unit sales price of $181. Fixed manufacturing costs were $480000 when 10000 units were produced and sold. The company has a one-time opportunity to sell an additional 1000 units at $120 each in a foreign market which would not affect its present sales.

We will not have into account the fixed costs, because there is unused capacity.

Increase in income= contribution margin * units sold

Increase in income= (120 - 100) * 1000= $20,000

6 0
3 years ago
When a company utilizies _______ it arranges for other organizations in the supply chain to perform functions that were previous
kobusy [5.1K]

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C

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5 0
3 years ago
Journalize the following transactions for Armour Inc. using both the periodic inventory system and the perpetual inventory syste
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Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

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6 0
3 years ago
Direct materials, $7 per unit, Direct labor, $5 per unit, Variable overhead, $6 per unit, and Fixed overhead, $270,000. The comp
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Answer:

Income reported under absorption costing =$440,000

Explanation:

<em>The income reported under absorption costing can be determined by  adjusting the income under variable costing for difference in profit.</em>

<em>The steps are outlined below:</em>

<em>Step 1</em>

<em>Calculate the Overhead absorption rate</em>

OAR = Budgeted Fixed overhead/ Budgeted number of units

=  $270,000/ 27,000 units

= $10

<em>Step 2</em>

<em>Calculate the change in inventory </em>

8500 units (given)

<em>Step 3</em>

<em>Calculate the difference in profit </em>=

<em> Difference in profit = OAR × change in inventory</em>

=8500×$10

= $85000

<em>Step 4</em>

<em>Calculate Income under absorption costing</em>

<em> =  Income under variable costing +  Difference in profit</em>

=$85,000 + $355,000

=$440,000

Income reported under absorption costing =$440,000

7 0
3 years ago
Read 2 more answers
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