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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: office Expenses Allocation Basis Total $30,000 Number of employees Salaries Depreciation Advertising 20,000 Cost of goods sold 40,000 Net sales Grinding 1,500 Drilling 1,000 $325,000 $ 75,000 Item Total Number of employees 2,500 $800,000 $200,000 $475,000 Net sales Cost of goods sold $125,000 The amount of salaries that should be allocated to Drilling for the current period is: Multiple Choice $15,000. $12,000. $30,000. $18,000. $10,000

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