Answer Happy

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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 operating departments using different allocation bases. The following information is available for the current period: Office Expenses Salaries Depreciation Advertising Total $ 45,000 23,000 46,000 Allocation Basis Number of employees Cost of goods sold Percentage of total sales 4 Department Drilling Grinding Total Number of employees 1,400 2,100 3,500 Sales $ 344,000 516,000 $ 860,000 Cost of goods sold $ 98,800 161,200 $ 260,000 The amount of depreciation that should be allocated to Grinding for the current period is: Multiple Choice $23,000