Hughes Company Has Two Departments, Come and Go If the Total Advertising Expense Is $300,000 and It Is

question 142

Multiple Choice

Hughes Company has two departments, Come and Go. Relevant information is presented below: $$\begin{array} { l l l } & \text { Come } & \mathrm { G } 0 \\ \text { Budgeted Sales }& \$ 400,000 & \$ 2,000,000 \\\text { Actual Sales } &\$ 300,000 & \$ 2,100,000\end{array}$$ If the total advertising expense is $300,000 and it is allocated on the basis of sales using the preferred method, then the amount allocated to the Go Department should be:

• A) $37,500
• B) $262,500
• C) $50,000
• D) $250,000

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