C e Secure https //newconnect-hea.cationcon Sectional Exam 3-Chapters 8.9.30 Hel

Question

C e Secure https //newconnect-hea.cationcon Sectional Exam 3-Chapters 8.9.30 Help Save & MC Qu. 96 Marks Corporation has two operating... 13 Maris Corporation has two oper atrg departments. Driling and Gendng·d an amce The tree categones of ofice esperses are allocated to the two departments using different allocation bases. The following information is avaiable for the cument penod Salaries Deprec iation Advertising 30,e00 Number of enployees 20,000 Cost of goods sold 4e,0e0 Net sales Item Drilling GrindingTotal 2, 500 $325,00 $475,00 $880,800 s sold75,000 $125,00e $200,e00 1,089 1,580 Net sales Cost of goods The amount of the advertising cost that should be alocaned to Diling for the curment penod s Multiple Choice

Explanation / Answer

Advertising costs allocated to Drilling = 40000/800000*325000= 16250 Option 3 is correct

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