MC Qu. 90 Marks Corporation has two operating... 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 ExpensesTotal Allocation Basis Salaries$44,000 Number of employees Depreciation 21,000 Cost of goods sold Advertising 44,000 Net sales ItemDrilling Grinding Total Number of employees 900 2,100 3,000 Net sales$350,000 $525,000 $875,000 Cost of goods sold$91,200 $148,800 $240,000 The amount of salaries that should be allocated to Grinding for the current period is:

$30,800

Explanation:

Amount of salaries to allocated to Grinding = Total salary cost * Number of employees in grinding/Total Number of employees

Amount of salaries to allocated to Grinding = $44,000 * 2,100/3,000

Amount of salaries to allocated to Grinding = $44,000 * 0.7

Amount of salaries to allocated to Grinding = $30,800

So, the amount of salaries that should be allocated to Grinding for the current period is $30,800

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