Question: Sub som Help Save & E Ultimo Co operates three production departments as profit centers. The following information is available for its most recent year.




Sub som Help Save & E Ultimo Co operates three production departments as profit centers. The following information is available for its most recent year. Departments contribution to overhead as a percent of sales is: Dept. Sales $1,180,000 2 580,000 3 880,000 Cost of Goods Sold $718,eee 168,000 318,000 Direct Expenses $131,600 58,000 168,000 Indirect Expenses $ 98,000 118,000 38,000 Multiple Choice 612 o 28.01 O 36 0% 39.0% C 66.4% suomi Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: Office Expenses Salaries Depreciation Advertising Total $42,000 30,000 64,000 Allocation Basis Number of employees Cost of goods sold Net sales Item Number of employees Net sales Cost of goods sold Drilling Grinding Total 1,200 1,800 3,000 $370,000 $555,000 $925,000 $125,400 $204,600 $330,000 The amount of the adveising cost that should be allocated to Grinding for the current period is: Multiple Choice $25,600 $83,400 $38,400 Prev Next > 10 of 40 Sed Help Save & Exit Submit Cost of goods sold $125,400 $204,600 $330,000 The amount of the advertising cost that should be allocated to Grinding for the current period is: 45 Multiple Choice $25,600 $83.400 $38,400. $370,000 $90,600 Next 10 of 4018
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