Monday Company Has Two Departments Total Company-Wide Advertising Costs Are $360,000

question 27

Multiple Choice

Monday Company has two departments.Relevant information is presented below:
$\begin{array}{lll}&\text { Department } 1&\text { Department } 2\\\text { Budgeted total assets } & \$ 500,000 & \$ 200,000 \\\text { Actual total assets } & \$ 600,000 & \$ 400,000 \\\text { Budgeted sales } & \$ 400,000 & \$ 2,000,000 \\\text { Actual sales } & \$ 200,000 & \$ 2,100,000\end{array}$
Total company-wide advertising costs are $360,000.The advertising costs are allocated based on sales using the preferred approach.What amount of advertising costs is allocated to Department 2?

• A) $37,500
• B) $50,000
• C) $262,500
• D) $300,000

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Definitions:

Language Acquisition Device

A hypothetical tool in the brain that enables infants to acquire and understand language rapidly as part of their innate biological endowment.

Reinforcement

In psychology, a consequence applied that strengthens an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Shaping

A psychological conditioning technique where successive approximations of a desired behavior are reinforced.

Heuristic

A problem-solving approach using practical methods or shortcuts to generate solutions that are not guaranteed to be optimal.