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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	$	52,000			Number of employees
Depreciation		37,000			Cost of goods sold
Advertising		75,000			Net sales

Item	Drilling			Grinding			Total
Number of employees		1,600			2,400			4,000
Net sales	$	400,000		$	600,000		$	1,000,000
Cost of goods sold	$	152,000		$	248,000		$	400,000

The amount of the advertising cost that should be allocated to Drilling for the current period is:

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 $52,000 Number of employees Cost of goods sold Depreciation Advertising 37,000 Net sales 75,000 Drilling Grinding Total Item Number of employees 1,600 2,400 4,000 $400,000 $600,000 $1,000,000 $152,000 $248,000 $ 400,000 Net sales Cost of goods sold The amount of the advertising cost that should be allocated to Drilling for the current period is: Multiple Choice $30,000. $100,000. $400,000. $45,000. $111,800

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