Figure 7-1 Luxurious Department Store Incurred $6,000 of Indirect Advertising Costs for Costs

question 117

Multiple Choice

Figure 7-1
Luxurious Department Store incurred $6,000 of indirect advertising costs for its operations. The following data has been collected for 2016 for its three departments:

-Refer to Figure 7-1. How much of the indirect advertising costs will be allocated to the Lingerie Department if direct advertising costs is the activity driver? (Round to the nearest dollar if necessary)

• A) $3,000
• B) $3,273
• C) $6,000
• D) $12,000