Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: The following information is available for its three operating (sales) departments:
What is the total advertising expense allocated to Department B?
A) $30,000.
B) $ 9,000.
C) $12,500.
D) $10,800.
E) $7,500.

Question

Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments:  The following information is available for its three operating (sales) departments:
 What is the total advertising expense allocated to Department B?
A) $30,000. 
B) $ 9,000. 
C) $12,500. 
D) $10,800. 
E) $7,500.

Quizplus · Accepted Answer

11eaadfd_ccb4_231d_95d8_8744c9e4d811_TB6948_00 Advertising allocated to Department B = ($300,000/$1,000,000) × $30,000 = $9,000

Pepper Department Store Allocates Its Service Department Expenses to Its