A. 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 $ 48,000 Number of employees Depreciation 24,000 Cost of goods sold Advertising 47,000 Net sales Item Drilling Grinding Total Number of employees 1,200 1,800 3,000 Net sales $ 346,000 $ 519,000 $ 865,000 Cost of goods sold $ 102,600 $ 167,400 $ 270,000 The amount of the total office expenses that should be allocated to Drilling for the current period is:

Multiple Choice

$47,120

$54,600

$78,000

$119,000

$595,000

B.

Two investment centers at Marshman Corporation have the following current-year income and asset data:

	Investment Center A			Investment Center B
Investment center income	$	480,000		$	606,100
Investment center average invested assets	$	2,540,000		$	2,090,000

The return on investment (ROI) for Investment Center B is:

Multiple Choice 344.8% 29.0% 28.0% 42.8% 23.5%