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

question 44

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 salaries that should be allocated to Grinding for the current period is:

• A)$30,000.
• B)$18,000.
• C)$15,000.
• D)$10,000.
• E)$12,500.

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Definitions:

Trustee

An individual or organization that holds and manages assets on behalf of another, often within the context of a trust.

Preferred Shares

A type of stock that provides certain advantages to shareholders, such as fixed dividends and priority over common stock in asset liquidation.

Rights and Restrictions

Legal entitlements or permissions and the limitations imposed on them, often outlined in contracts or laws.

Negotiated

The process by which parties come to a mutual agreement through discussion and compromise.