Marks Corporation Has Two Operating Departments, Drilling and Grinding, and an Office

question 50

Multiple Choice

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: The amount of depreciation that should be allocated to Drilling for the current period is:

• A) $40,000.
• B) $20,000.
• C) $25,000.
• D) $ 7,500.
• E) $12,500.

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Definitions:

Drive

A condition of arousal in an organism that is associated with a need.

Need

A state of deprivation.

Desire

A strong feeling of wanting or wishing for something to happen or be obtained.

Physiological Factors

Aspects related to the body's biological processes that can influence an individual's health, behavior, and reactions to various stimuli.