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:

Office ExpensesTotalAllocation BaseSalaries$ 30,000Number of employeesDepreciation20,000Cost of goods soldAdvertising40,000Percentage of total sales

DepartmentNumber of employeesSalesCost of goods soldDrilling1,000$ 325,000$ 75,000Grinding1,500475,000125,000Total2,500$ 800,000$ 200,000

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

Multiple Choice

$18,000.

$10,000.

$12,000.

$30,000.

$15,000.