QS 22-6 (Algo) Allocating costs to departments LO P2 Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $120,000. Sales for its operating departments follow. Department 1 2 3 Sales $ 267,000 445,000 178,000 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 %

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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QS 22-6 (Algo) Allocating costs to departments LO P2
Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are
$120,000. Sales for its operating departments follow.
Department
1
2
3
Sales
$ 267,000
445,000
178,000
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
%
Transcribed Image Text:QS 22-6 (Algo) Allocating costs to departments LO P2 Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $120,000. Sales for its operating departments follow. Department 1 2 3 Sales $ 267,000 445,000 178,000 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 %
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