A Retail Store Has Three Departments,1,2,and 3,and Does General Advertising

question 24

Multiple Choice

A retail store has three departments,1,2,and 3,and does general advertising that benefits all departments.Advertising expense totaled $50,000 for the year,and departmental sales were as follows.Allocate advertising expense to Department 2 based on departmental sales. Department 1…………………………..$110,000
Department 2………………………….. 213,750
Department 3………………………….. 151,250

• A)$11,000.
• B)$14,000.
• C)$16,667.
• D)$22,500.
• E)$50,000.

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