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

question 117

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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 Basi5  Salaries $30,000 Number of employees  Depreciation 20,000 Cost of goods sold  Advertisirg 40,000 Net sales  Item  Drilling  Grinding  Tatal  Number of employees 1,0001,5002,500 Net sales $325,000$475,000800,000 Cast of goods sald $75,000$125,000200,000\begin{array} { l c c c } \text { Office Expenses } & \text { Total } & { \text { Allocation Basi5 } } \\\text { Salaries } & \$30,000 & \text { Number of employees } \\\text { Depreciation } & 20,000 & \text { Cost of goods sold } \\\text { Advertisirg } & 40,000 & \text { Net sales } & \\\text { Item } & \text { Drilling } & \text { Grinding } & \text { Tatal } \\\text { Number of employees } & 1,000 & 1,500 & 2,500 \\\text { Net sales } & \$325,000 & \$ 475,000 & 800,000 \\\text { Cast of goods sald } & \$75,000 & \$ 125,000 & 200,000\end{array} The amount of salaries that should be allocated to Drilling for the current period is:

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Definitions:

Salesperson

An individual who sells products or services to customers, aiming to meet customer needs and achieve sales targets.

Marketing Plan

A comprehensive document outlining a company's advertising and marketing efforts for a specific period.

Sales Presentation

A structured dialogue or pitch by a salesperson with the aim of persuading a potential buyer to purchase a product or service.

End-User

The final consumer of a product or service, who uses it for its intended purpose.

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