Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to


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
Salaries
Depreciation
Advertising
Total
$52,000
37,000
75,000
Allocation Basis
Number of employees
Cost of goods sold
Net sales
Item
Number of employees
Net sales
Cost of goods sold
Drilling Grinding Total
1,600 2,400
4,000
$400,000 $600,000 $1,000,000
$152,000 $248,000 $ 400,000
The amount of depreciation that should be allocated to Drilling for the current period is.


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