1. Marian Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year:

	Black Division					Navy Division
Sales (net)		$	200,000			$	400,000
Salary expense			28,000				48,000
Cost of goods sold			100,000				159,000

The Black Division occupies 20,000 square feet in the plant. The Navy Division occupies 30,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $50,000. Compute gross profit for the Black and Navy Divisions, respectively.

2.

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:

Office Expenses	Total				Allocation Basis
Salaries	$	30,000			Number of employees
Depreciation		20,000			Cost of goods sold
Advertising		40,000			Net sales

Item	Drilling				Grinding				Total
Number of employees		1,000				1,500				2,500
Net sales	$	325,000			$	475,000			$	800,000
Cost of goods sold	$	75,000			$	125,000			$	200,000

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