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: Allocation Basis Office Expenses Total Salaries Depreciation Advertising $ 33,000 23,000 43,000 Number of employees Cost of goods sold Department Number of employees Drilling 750 Sales $ 332,000 Grinding 1,750 498,000 Percentage of total sales Cost of goods sold $ 87,400 142, 600 Total 2,500 $ 830,000 $ 230,000