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 Salaries Depreciation Advertising Department Drilling Grinding Total Multiple Choice $30,000. Number of employees 1,600 2,400 4,000 $100,000. $45,000. The amount of the advertising cost that should be allocated to Grinding for the current period is: Total $ 52,000 37,000 75,000 $400,000 $111,800. Allocation Basis Number of employees Cost of goods sold Percentage of total sales. Sales $ 400,000 600,000 $ 1,000,000 Cost of goods sold $ 152,000 248,000 $ 400,000

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