Reference no: EM132612857

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                          45,000

Number of employees Depreciation      23,000

Cost of goods sold Advertising           46,000 Net sales

Item                          Drilling                 Grinding                    Total

Number of employees 1,400                   2,100                3,500

Net sales                   $344,000                $516,000         $860,000

Cost of goods sold        $98,800                 $161,200             $260,000

Question 1: The amount of the total office expenses that should be allocated to Drilling for the current period is