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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Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $132,000. Sales for its operating departments follow. Department 1 2 3 Sales $ 245,000 450,800 284,200 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 Sales Percent of Total Cost Allocated 1 $ 245,000 25.00 % $ 2 450,800 46.00 % 3 284,200 29.00 % Total $ 980,000 100.00 %
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