QUESTION 24 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. Using the information shown below the amount of depreciation expenses that should be allocated to Drilling for the current period is: Ofce Expenses Total Allocation Basis Salaries $30,000 Number of employees Depreciation $20,000 Cost of goods sold Advertising $40,000 Net sales Item Drilling Grinding Total Number of employees 1000 1500 2500 Net sales $325,000 $475,000 $800,000 Cost of goods sold $75,000 $125,000 $200,000 0 $40,000. 0 $20,000. 0 $25,000. 0 $ 7,500. O $12,500. QUESTION 16 Dartford Company reported the following financial data for one of its divisions for the year; average investment center total assets of $3,500,000; investment center income $610,000; a target income of 12% of average invested assets. The residual income for the division is: 0 $536,800. 0 $1,030,000. O $190,000. O $683,200. O $493,200. QUESTION 17 Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct labor requirement per unit is 0.50 hours. Labor is paid at the rate of $21 per hour. The total cost of direct labor for the month of August is: O $82,950. O $4,050. O $85,050. O $3,950. O $168,000