Final answer:
The amount of office salaries allocated to the Grinding department is $18,600, which is calculated by multiplying the total office salaries of $31,000 by 60%, corresponding to the department's proportion of total employees.
Step-by-step explanation:
Calculation of Salaries Allocation to Grinding Department
To calculate the amount of office salaries that should be allocated to the Grinding department, we must look at the total number of employees as the allocation basis for salaries. The combined number of employees in both departments (Drilling and Grinding) is 800 + 1,200 = 2,000. The proportion of employees in the Grinding department is 1,200/2,000, which is 60% of the total. Thus, the Grinding department should be allocated 60% of the office salaries:
Total office salaries: $31,000
Proportion for Grinding:
60% of $31,000 = 0.60 x $31,000 = $18,600