Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation BaseSalaries $ 30,000 Number of employeesDepreciation 20,000 Cost of goods soldAdvertising 40,000 Percentage of total sales Department Number of employees Sales Cost of goods soldDrilling 1,000 $ 325,000 $ 75,000Grinding 1,500 475,000 125,000Total 2,500 $ 800,000 $ 200,000The amount of the advertising cost that should be allocated to Grinding for the current period is:

Personnel expenses would most likely be allocated to operating departments using which allocation base?Multiple choice question.Sales dollars generatedNumber of employeesSquare feet of floor space occupiedPurchase orders processed

Markson Company had the following results of operations for the past year: Contribution margin income statement Per Unit Annual TotalSales (8,000 units) $ 20.00 $ 160,000Variable costs    Direct materials 4.25 34,000Direct labor 6.00 48,000Overhead 2.00 16,000Contribution margin 7.75 62,000Fixed costs    Fixed overhead 4.25 34,000Income $ 3.50 $ 28,000A foreign company offers to buy 2,000 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $1,600 for the purchase of special tools. Markson’s annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will:Multiple ChoiceDecrease by $5,100.Decrease by $5,650.Increase by $1,900.Decrease by $1,600.Increase by $3,500.

Which of the following is reported as part of the operating expenses?Group of answer choicesFreight-inFreight-outCost of salesSales allowances

The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Assembly. Department Direct Expenses Number Purchase Orders Square FeetPurchasing $ 32,000    Maintenance 18,000    Fabrication 96,000 16 3,300Assembly 62,000 4 2,700Multiple Choice$9,000.$9,900.$6,400.$25,600.$8,100.

Operating costing is suitable for .a.job order business.b.sugar industries.c.service industries.d.contractors.