1. MC.07.056 Luxurious Department Store incurred $6,000 of indirect advertising costs for its operations. The following...

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1. MC.07.056 Luxurious Department Store incurred $6,000 of indirect advertising costs for its operations. The following data have been collected for the year for its three departments: Sales Direct advertising costs Newspaper ad space Sportswear $160,000 $7,000 62% Lingerie $120,000 $12,000 20% Appliances $120,000 $3,000 18% How much of the indirect advertising costs will be allocated to the Sportswear Department if newspaper ad space is the activity driver? 1. MC.07.056 Luxurious Department Store incurred $6,000 of indirect advertising costs for its operations. The following data have been collected for the year for its three departments: Sales Direct advertising costs Newspaper ad space Sportswear $160,000 $7,000 62% Lingerie $120,000 $12,000 20% Appliances $120,000 $3,000 18% How much of the indirect advertising costs will be allocated to the Sportswear Department if newspaper ad space is the activity driver?

Answer rating: 100% (QA)

To allocate the indirect advertising costs to the Sportswear Department using newspaper ad space as ... View the full answer