(5) WITH SOLUTIONS PLEASE

Problem Solving: Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: Expense Basis for allocation Amount Rent Square feet of floor space $24,000 Advertising Amount of dollar sales $30,000 Administrative Number of employees $45,000 The following information is available for its three operating (sales) departments: Square Dollar Number of Department Feet Sales employees A 3,000 $280,000 6 B 3,400 $300,000 8 3.600 $420,000 10 Totals 10,000 $1,000,000 24 What is the total advertising expense allocated to Department B? What is the total advertising expense allocated to Department B? $9,000 $30,000 $12,500 O $10,800