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: Office Expenses Salaries Depreciation Advertising Allocation Basis Number of employees Total $47,000 33,000 67,000 Cost of goods sold Net sales Item Number of employees Net sales Cost of goods sold Drilling Grinding 2,000 Total 3,000 5,000 $372,000 $558,000 $930,000 $136,800 $223,200 $360,000