A retail store has three departments, S, T, and U, and does general advertising that benefits all departments. Advertising expense totaled $37,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department T based on departmental sales. (Do not round your intermediate calculations.)

Department S $118,000

Department T 212,550

Department U 150,450

Total 481,000

a. $16,350.

b. $14,800.

c. $37,000.

d. $17,467.

e. $11,800.

Question

Business

Dakota Schmidt

2 October, 17:23

A retail store has three departments, S, T, and U, and does general advertising that benefits all departments. Advertising expense totaled $37,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department T based on departmental sales. (Do not round your intermediate calculations.)

Department S $118,000

Department T 212,550

Department U 150,450

Total 481,000

a. $16,350.

b. $14,800.

c. $37,000.

d. $17,467.

e. $11,800.

+3

Answers (1)

Know the Answer?

Cornelius Mcconnell · Answer 1

a. $16,350.

Explanation:

The computation of the advertising expense to Department T based on departmental sales is shown below:

= Total advertising expenses * Department T Sales : total sales

= $37,000 * $212,550 : $481,000

= $16,350

By multiplying the total advertising expenses with the department T sales and then divide it by the total sales we can get the allocation amount