Wininger Company Has Two Departments Corporate Management Salaries Are $3,000,000

question 111

Multiple Choice

Wininger Company has two departments.Relevant information is presented below:
$\begin{array}{lll}&\text { Department } 1&\text { Department } 2\\\text { Budgeted gross margin } & \$ 100,000 & \$ 500,000 \\\text { Actual gross margin } & \$ 200,000 & \$ 600,000 \\\text { Budgeted sales } & \$ 500,000 & \$ 2,000,000 \\\text { Actual sales } & \$ 300,000 & \$ 2,100,000\end{array}$
Corporate management salaries are $3,000,000.The salaries are allocated based on sales using the preferred approach.What amount of salaries is allocated to Department 1?

• A) $300,000
• B) $375,000
• C) $600,000
• D) $750,000

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Definitions:

Financial Statements

Consolidated documents presenting the financial status, performance, and cash flows of a company, primarily comprising the balance sheet, income statement, and statement of cash flows.

Working Paper

Documents that record the detailed information and procedures used in an audit or financial analysis, serving as the basis for conclusions.

End-Of-Period Spreadsheet

A document used to gather all account balances at the end of an accounting period to prepare financial statements.

Prepaid Insurance

An asset account that represents insurance payments made in advance for coverage extending over future periods.