Bambi Company Has Two Departments Total Company-Wide Advertising Costs Are $540,000

question 113

Multiple Choice

Bambi Company has two departments.Relevant information is presented below:
$\begin{array}{lll}&\text { Department } 1&\text { Department } 2\\\text { Budgeted total assets } & \$ 1,000,000 & \$ 2,000,000 \\\text { Actual total assets } & \$ 1,200,000 & \$ 2,300,000 \\\text { Budgeted sales } & \$ 500,000 & \$ 2,000,000 \\\text { Actual sales } & \$ 300,000 & \$ 2,100,000\end{array}$
Total company-wide advertising costs are $540,000.The advertising costs are allocated based on sales using the preferred approach.What amount of advertising costs is allocated to Department 1?

• A) $67,500
• B) $108,000
• C) $185,143
• D) $270,000

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Definitions:

Criminal Court

A court that has jurisdiction over cases involving criminal offenses and dispenses justice according to criminal law.

Fraud

A wrongful or criminal deception intended to result in financial or personal gain.

Businessperson

An individual who is involved in activities for the purpose of generating revenue and profit.

Legal Concessions

Rights or privileges granted by a government or authority to an individual or company, often relating to the use of land or natural resources.