Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $146,000. Sales for its operating departments follow. Department 1 2 3 Sales $ 321,000 492,200 256,800 How much advertising cost is allocated to each operating department if the allocation is based on departmental sales? Note: Do not round your intermediate calculations. Department 1 Sales Percent of Total Cost Allocated % 2 % 3 % Total $ 0 0.00 % $ 0
Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $146,000. Sales for its operating departments follow. Department 1 2 3 Sales $ 321,000 492,200 256,800 How much advertising cost is allocated to each operating department if the allocation is based on departmental sales? Note: Do not round your intermediate calculations. Department 1 Sales Percent of Total Cost Allocated % 2 % 3 % Total $ 0 0.00 % $ 0
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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