High Traffic Products Corporation has two departments,Small and Large.Central costs could be allocated to the two departments in various ways.

If total advertising expense of $629,300 is allocated on the basis of sales,the amount allocated to the Large Department would be ________.
A)$107,300
B)$558,000
C)$522,000
D)$314,650

Question

High Traffic Products Corporation has two departments,Small and Large.Central costs could be allocated to the two departments in various ways.

If total advertising expense of $629,300 is allocated on the basis of sales,the amount allocated to the Large Department would be ________.
A)$107,300 
B)$558,000 
C)$522,000 
D)$314,650

Quizplus · Accepted Answer

Amount allocated to the Large Department
= $629,300 × ($1,800,000 / $2,170,000)= $522,000

High Traffic Products Corporation Has Two Departments,Small and Large