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 Expenses	Total	Allocation Basis
Salaries	$ 54,000	Number of employees
Depreciation	36,000	Cost of goods sold
Advertising	70,000	Percentage of total sales

Department	Number of employees	Sales	Cost of goods sold
Drilling	2,000	$ 390,000	$ 148,200
Grinding	3,000	585,000	241,800
Total	5,000	$ 975,000	$ 390,000

The amount of the total office expenses that should be allocated to Drilling for the current period is:

Multiple Choice

• $94,200.

• $585,000.

• $160,000.

• $63,280.

• $112,200.

A company rents a building with a total of 50,000 square feet, which are evenly divided between two floors. The total monthly rent for the building is $60,000. The company allocates $40,000 of total rent expense to the first floor and $20,000 of total rent expense to the second floor. How much of the monthly rental expense should be allocated to a department that occupies 10,000 square feet on the second floor?

Multiple Choice

• $22,000.

• $8,000.

• $8,000.

• $32,000.

• $10,000.

Canfield Technical School allocates administrative costs to its respective departments based on the number of students enrolled, while maintenance and utility costs are allocated based on the square footage of each departments classroom. Based on the information below, what is the total amount of maintenance cost to the Carpentry Department (rounded to the nearest dollar) if administrative costs for the school were $73,000, maintenance fees were $21,000, and utilities were $6,900?

Department	Students	Classroom Square Feet
Electrical	200	11,250
Welding	100	18,000
Accounting	60	9,000
Carpentry	40	6,750
Total	400	45,000

Multiple Choice

• $1,471.

• $21,000.

• $2,100.

• $3,350.

• $3,150.