A retail company has three departments: A, B, and C, and conducts general advertising that benefits all departments. Advertising expense totaled $60,000 for the year, and departmental sales were as follows: Department Sales Dept. A $125,000 Dept. B $245,000 Dept. C $180,000 How much advertising expense should be allocated to Department B if the allocation is based on departmental sales?

A retail company has three departments: A, B, and C, and conducts general advertising that benefits all departments. Advertising expense totaled $60,000 for the year, and departmental sales were as follows: Department Sales Dept. A $125,000 Dept. B $245,000 Dept. C $180,000 How much advertising expense should be allocated to Department B if the allocation is based on departmental sales?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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