Marks Corporation has two operating departments, Drilling an…
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: Office Expenses Total Allocation Basis Salaries $ 42,000 Number of employees Depreciation 22,000 Cost of goods sold Advertising 45,000 Percentage of total sales Department Number of employees Sales Cost of goods sold Drilling 1,200 $ 340,000 $ 95,000 Grinding 1,800 510,000 155,000 Total 3,000 $ 850,000 $ 250,000 The amount of salaries that should be allocated to Drilling for the current period is:
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