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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 departments using

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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 departments using different allocation bases. The following information is available for the current period: Salaries Depreciation Advertising $30,000 Number of employees 20,000Cost of goods sold 40,000 Net sales tem Number of employees 2,500 $325,000 $475,000 $800,000 Cost of goods sold 75,000 $125,000 $200,000 1,000 1,500 The amount of depreciation that should be allocated to Drilling for the current period is $20.000. $25,000 Prev 2 of 10 Next > Marks Corporation has two operating d departments using different allocation bases. The following information is available for the current period: Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two Total Al $30,000 r of employees Salaries Depreciation Advertising 20,000Cost of goods sold 40,000 Net sales 2,500 $325,000 $475,000 $800,000 75,000 $125,000 $200,000 1,000 1,500 Number of employees Net sales Cost of goods sold The amount of salaries that should be allocated to Driling for the current period is: Multiple Choice $18.000 $15,000 of direct expenses are allocated to the operating departments on the basis of purchase $32,000 $18,000 $96,000 $62,000 16 3,300 Sq. ft. of space 2,700 10 of 10

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