Yo Department Store Incurred $4,000 of Indirect Advertising Costs for Its

question 23

Multiple Choice

Yo Department Store incurred $4,000 of indirect advertising costs for its operations. The following data has been collected for the current year for its three departments:
$\begin{array}{lccc}&\text {Shoes }&\text {Cosmetics }&\text {Crafts }\\\text { Sales } & \$ 160,000 & \$ 120,000 & \$ 120,000 \\\text { Direct advertising costs } & \$ 7,000 & \$ 10,000 & \$ 3,000 \\\text { Newspaper ad space } & 62 \% & 20 \% & 18 \%\end{array}$
-Refer to the figure.How much of the indirect advertising costs will be allocated to the Shoes Department if newspaper ad space is the activity driver?

• A)$1,520
• B)$2,480
• C)$4,000
• D)$4,340

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