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29 (LO 9) Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the

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29 (LO 9) 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: Total $56,000 35,000 69,000 Allocation Basis Number of employees Cost of goods sold Net sales Office Expenses Salaries Depreciation Advertising Grinding 2,400 $392,000 $588,000 $980,000 $144,400 $235,600 $380,000 Item Number of employees Drilling 1,600 Total 4,000 Net sales Cost of goods sold The amount of salaries that should be allocated to Grinding for the current period is: Multiple Choice $56,000 $33,600

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