A Retail Store Has Three Departments, S, T, and U

question 198

Multiple Choice

A retail store has three departments, S, T, and U, 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 T based on departmental sales. $$\begin{array} { l } \text { Departinent S } &\$110,000 \\\text { Departrnent T } &\$213,750\\\text { Departrnent U } &\$151,250\\\text { Total }&\$475,000\end{array}$$

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

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