Answer:
Total Office expense allocated to Drilling for this current period is $43,160
Explanation:
<em><u>Office expense allocation to Drilling</u></em>
Salaries = $42,000 x 1200 employees/3000 total employee = $16,800
Depreciation = $22,000 x $95,000/ $250,000 total COGS= $8,360
Advertising = $45,000 x $340,000/ $850000 total Sales = <u>$18,000</u>
Total Office expense allocated to Drilling= <u>$43,160</u>