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36 Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating

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36 Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: 1.5 points Office Expenses Salaries Depreciation Advertising Total $ 30,000 20,000 40,000 Allocation Base Number of employees Cost of goods sold Percentage of total sales 00:10:59 Department Drilling Grinding Total Number of employees 1,000 1,500 2,500 Sales $ 325,000 475,000 Cost of goods sold $ 75,000 125,000 $ 200,000 $ 800,000 The amount of salaries that should be allocated to Grinding for the current period is: Multiple Choice $12.500. $10,000 $15,000. $18,000. $30,000

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