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The amount of the advertising cost that should be allocated to Drilling for the current...

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Accounting

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The amount of the advertising cost that should be allocated to Drilling for the current period is: Multiple Choice $16,250. O $45,000. O $23,750. O $325,000. O $54,250. Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Total Office Expenses Salaries Depreciation Advertising $ 30,000 20,000 40,000 Allocation Base Number of employees Cost of goods sold Percentage of total sales Department Drilling Grinding Number of employees 1,000 1,500 2,500 Sales $ 325,000 475,000 $ 800,000 Cost of goods sold $ 75,000 125,000 $ 200,000 Total The amount of depreciation that should be allocated to Drilling for the current period is: Multiple Choice $20,000. $25,000. O $7,500. $12,500. $40,000

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