Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses a

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3 years ago

6

Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses a

re allocated to the two departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $ 39,000 Number of employees Depreciation 29,000 Cost of goods sold Advertising 68,000 Net sales Item Drilling Grinding Total Number of employees 1,800 2,700 4,500 Net sales $ 368,000 $ 552,000 $ 920,000 Cost of goods sold $ 121,600 $ 198,400 $ 320,000 The amount of depreciation that should be allocated to Drilling for the current period is:

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