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

question 109

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: $\begin{array}{lrrr}\text { Item } & \text { Drilling } & \text { Grinding } & \text { Total } \\\text { Number of employees } & 1,000 & 1,500 & 2,500 \\\text { Net sales } & \$ 325,000 & \$ 475,000 & \$ 800,000 \\\text { Cost of goods sold } & \$ 75,000 & \$ 125,000 & \$ 200,000\end{array}$
The amount of depreciation that should be allocated to Grinding for the current period is:

• A) $20,000.
• B) $25,000.
• C) $7,500.
• D) $12,500.
• E) $40,000.

---

Definitions:

Physical Punish

A form of punishment involving the use of physical force with the intention of causing a person pain or discomfort as a response to their behavior, commonly referred to as physical punishment.

Oppositional Defiant Disorder

A behavioral disorder in children and teens characterized by a persistent pattern of anger, irritability, argumentativeness, defiance, or vindictiveness toward authority figures.

Amygdala

Structure of the limbic system critical in emotions such as fear.

Hippocampus

Structure of the brain involved in memory and in the stress response.