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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
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 Salaries Allocation Base $30,000 Number of employees Depreciation 20,000 Cost of goods sold Advertising 40,000 Percentage of total sales Department Number of employees Sales Cost of goods sold 1,000 $325,000 $75,000 1,500 2,500 Drilling Grinding Total $35,750. $45,000. $54,250. $90,000. $600,000. 475,000 125,000 $800,000 $200,000 The amount of the total office expenses that should be allocated to Drilling for the current period is:
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