A retail store has three departments, 1, 2, and 3, and does general advertising

Question

A retail store has three departments, 1, 2, and 3, and does general advertising that benefits all departments. Advertising expense totaled $48,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department 2 based on departmental sales. (Do not round your intermediate calculations.)

$48,000.

$14,100.

$21,750.

$16,767.

$11,100.

A retail store has three departments, 1, 2, and 3, and does general advertising that benefits all departments. Advertising expense totaled $48,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department 2 based on departmental sales. (Do not round your intermediate calculations.)

Explanation / Answer

Calculation of the Advertising Expenses Total Department1 111000 Department 2 213150 Department3 146250 Total 470400 Department2 48000*213150/470400 21750 The correct answer is C. $ 21750

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.