Pepper Department Store allocates its service department expenses to its various operating (sales) departments. The following data
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Question:
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 | $ 31,000 |
Advertising | Amount of dollar sales | 44,000 |
Administrative | Number of employees | 66,000 |
The following information is available for its three operating (sales) departments:
Department | Square Feet | Dollar Sales | Number of employees |
---|---|---|---|
A | 3,700 | $ 301,000 | 13 |
B | 4,100 | $ 321,000 | 15 |
C | 4,300 | $ 448,000 | 17 |
Totals | 12,100 | $ 1,070,000 | 45 |
What is the total advertising expense allocated to Department B?
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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