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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 departments using different allocation bases. The following information is available for the current period:
Office Expenses Total Allocation Basis
Salaries $ 31,000β Number of employees
Depreciation 20,500β Cost of goods sold
Advertising 41,500β Net sales
Item Drilling Grinding Total
Number of employees 1080β 1620β 2700β
Net sales 326,625β 477,375β 804,000β
Cost of goods sold 76,500β 127,500β 204,000β
The amount of the total office expenses that should be allocated to Grinding for the current period is (Do not round your intermediate calculations.)
a) $56,054.
b) $46,204.
c) $93,000.
d) $36,954.
e) $600,000.
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