Marks Corporation Has Two Operating Departments, Drilling and Grinding, and an Office

Multiple Choice

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

A) $16,250.
B) $45,000.
C) $23,750.
D) $325,000.
E) $54,250.