Luxurious Department Store Incurred $6,000 of Indirect Advertising Costs for Its

question 156

Multiple Choice

Luxurious Department Store incurred $6,000 of indirect advertising costs for its operations. The following data has been collected for 2018 for its three departments: $\begin{array}{lrrr}&\text { Sportswear } &\text { Lingerie} &\text { Appliance: }\\\text { Sales } & \$ 160,000 & \$ 120,000 & \$ 120,000 \\\text { Direct adverti sing costs } & \$ 7,000 & \$ 12,000 & \$ 3,000 \\\text { Newspaper ad space } & 62 \% & 20 \% & 18 \%\end{array}$
How much of the indirect advertising costs will be allocated to the Sportswear Department if newspaper ad space is the activity driver?

• A)$6,000
• B)$4,340
• C)$3,720
• D)$2,280

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Definitions:

Social Institution

A complex, integrated set of norms and structures that dictate how individuals in a society interact and organize around fundamental needs and purposes, like family, education, and religion.

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