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

question 182

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 Drilling for the current period is:

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

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Definitions:

Rheumatic Fever

An inflammatory disease that can develop as a complication of inadequately treated strep throat or scarlet fever, affecting the heart, joints, skin, and brain.

Thick Fluid

A liquid that has a high viscosity and does not flow easily.

Lungs

Organs found in the respiratory system primarily responsible for the exchange of oxygen and carbon dioxide between the air and blood.

Otitis Media

Inflammation of the middle ear.