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OlgaM077 [116]
3 years ago
8

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 $ 42,000 Number of employees Depreciation 30,000 Cost of goods sold Advertising 64,000 Net sales Item Drilling Grinding Total Number of employees 1,200 1,800 3,000 Net sales $ 370,000 $ 555,000 $ 925,000 Cost of goods sold $ 125,400 $ 204,600 $ 330,000 The amount of depreciation that should be allocated to Drilling for the current period is: Multiple Choice $64,000. $18,600. $39,680. $11,400. $30,000.
Business
1 answer:
Ivenika [448]3 years ago
5 0

Answer:

$11,400

Explanation:

The expenses are allocated to different department based on different suitable allocation basis. These basis are also known as the cost drivers.

As per given information

Office Expenses     Total           Allocation Basis

Salaries                   $42,000    Number of employees

Depreciation           $30,000   Cost of goods sold

Advertising             $64,000    Net sales

Item                                Drilling      Grinding     Total

Number of employees   1,200         1,800         3,000

Net sales                      $370,000   $555,000  $925,000

Cost of goods sold      $125,400    $204,600  $330,000

Depreciation is allocated to department based on the cost of goods sold by each department.

Depreciation expense allocation

To drilling department = Depreciation expense x Cost of goods sold ratio = $30,000 x $125,400 / $330,000 = $11,400

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Answer:

What does economy of language mean?

Explanation:

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If the lowest-paid employee earned $15,000 a year, what would the maximum salary be for the highest-paid manager under the 7-to-
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Under the 7-to-1 rule, the maximum salary that would be paid to the highest-paid manager is $105,000.

Data and Calculations:

Lowest-paid employee's annual earnings =$15,000

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Learn more: brainly.com/question/3854368

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2 years ago
Which of these roles is the highest ranking person in a company?
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5 0
3 years ago
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Roth Service Co. experienced the following transactions for 2018, its first year of operations: Provided $80,000 of services on
Stels [109]

Answer and Explanation:

a. The preparation of income statement is shown below:-

                               Income Statement

Service revenue                               $80,000

operating expenses  

Salary expenses           $28,000

Uncollectible accounts

expense                        $3,273

Total operating expense                   $31,273

Net income                                         $48,727

Working Note :-

Days       Amount     Percentage     Allowance balance

Current   $16,800       0.01                  $168

0-30         $5,100        0.05                 $255

31-60       $4,000        0.10                  $400

61-90       $2,000        0.30                 $600

Over 90

days         $3,700       0.50                  $1,850

Total        $31,600                                $3,273

b. The computation of net realizable value of the accounts receivable is shown below:-

Net realizable value = Accounts receivable - Allowance for doubtful accounts

= ($80,000 - $48,400) - $3,273

= $31,600 - $3,273

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4 0
3 years ago
Baker Corp. is required by a debt agreement to maintain a current ratio of at least​ 2.5, and​ Baker's current ratio now is 3. B
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Answer:

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Therefore, $1.67 Million inventory can Baker purchase without violating its debt agreement if their total current assets equal​ $15 million

7 0
3 years ago
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