Stohr Company has two departments, New and Old. Central costs are allocated to the two departments in various ways. Relevant information is presented below:

-If total advertising expense is $120,000 and it is allocated on the basis of sales, the amount allocated to the Old Department should be
A) $90,000.
B) $36,000.
C) $100,000.
D) $ 20,000.

Question

Stohr Company has two departments, New and Old. Central costs are allocated to the two departments in various ways. Relevant information is presented below:
 
-If total advertising expense is $120,000 and it is allocated on the basis of sales, the amount allocated to the Old Department should be
A) $90,000. 
B) $36,000. 
C) $100,000. 
D) $ 20,000.

Quizplus · Accepted Answer

The Answer of Stohr Company has two departments, New and Old. Central costs are allocated to the two departments in various ways. Relevant information is presented below:
 
-If total advertising expense is $120,000 and it is allocated on the basis of sales, the amount allocated to the Old Department should be
A) $90,000. 
B) $36,000. 
C) $100,000. 
D) $ 20,000.

Stohr Company Has Two Departments, New and Old