Dartmouth Building Products Inc. Provides the Following Information

question 133

Multiple Choice

Dartmouth Building Products Inc. provides the following information.
Corporate advertising costs = $850,000
Division A - $5,000,000
Division B - $20,000,000
Number of ads run relevant on Division A products 500
Number of ads run relevant to Division B products 3667
Assume that customers with higher revenues benefited more from corporate advertising costs than customers with lower revenues. What is the allocated corporate costs for Division A?

• A) $748,000
• B) $212,500
• C) $170,000
• D) $850,000

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Definitions:

Primary Volt-Amps

A measurement of apparent power in an electrical system, primarily used in AC circuits, representing the product of primary voltage and current.

Load Connected

Refers to an electrical component or device that is connected to a circuit and draws power from it.

Secondary

Refers to the output side of a transformer that receives energy from the primary winding and delivers it to the load.

Turns Ratio

The ratio of the number of turns in the primary winding to the number of turns in the secondary winding of a transformer, which determines the voltage transformation.