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
$33,000
Number of employees
Depreciation
23,000
Cost of goods sold
Advertising
43,000
Net sales
Item
Drilling Grinding Total
Number of employees
750 1,750 2,500
Net sales
$332,000 $498,000 $830,000
Cost of goods sold
$ 87,400 $142,600 $230,000
The amount of depreciation that should be allocated to Grinding for the current period is:
Multiple Choice
$23,000.
$26,660.
$8,740.
$14,260.
$43,000.