A Retail Store Has Three Departments, S, T, and U

question 81

Multiple Choice

A retail store has three departments, S, T, and U, and does general advertising that benefits all departments. Advertising expense totaled $50,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department T based on departmental sales. $\begin{array}{lr}\text { Department S } & \$ 110,000 \\\text { Department T } & 213,750 \\\text { Department U } & 151,250 \\\text { Total } & \$ 475,000 \\\end{array}$

• A) $11,000.
• B) $14,000.
• C) $16,667.
• D) $22,500.
• E) $50,000.

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Definitions:

Consciousness

Consciousness refers to the state of being aware of and able to think about one's environment, thoughts, and experiences.

Social Acceptance

The degree to which an individual is accepted or regarded favorably by society or a social group.

Lymphocytes

The two types of white blood cells that are part of the body’s immune system: B lymphocytes form in the bone marrow and release antibodies that fight bacterial infections; T lymphocytes form in the thymus and other lymphatic tissue and attack cancer cells, viruses, and foreign substances.

Mental Alertness

The state of being keenly attentive, awake, and able to think and react quickly, often influenced by various physiological and psychological factors.