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Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are abocated to the two operating departments
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are abocated to the two operating departments using different allocations. The following information is available for the center office Expenses Allocation Base Number of employees Percentage of total sales Salaries Total $ 30,000 Depreciation 20,000 Cost of goods sold Advertising 40,000 Department Number of employees Drilling 1,000 Grinding 1,500 Sales $325,000 475,000 Cost of goods sold $75,000 125,000 Total 2,500 $ 800,000 $ 200,000 The amount of the advertising cost that should be allocated to Grinding for the cument period is Multiple Choice O O $16.250 $21750 $125,000 554250 $4,000
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