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A retail store has three departments, 1, 2, and 3, and does general advertising that benefits all departments. Advertising expense totaled $50,000 for the year, and departmental sales were as follows:

Dept 1 $110,000

Dept 2 $ 213,750

Dept 3 $151,250

How much advertising expense should be allocated to Department 2 if the allocation is based on the departmental sales?

Choose one answer.

A. $11,000.

B. $14,000.

C. $16,667.

D. $22,500.

E. $50,000.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9796829

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