Question
Dartmouth Building Products Inc. provides the following information. Corporate advertising costs = $860,000 Division A $4,900,000 Division B $19,600,000 Number of ads run on Division
Dartmouth Building Products Inc. provides the following information.
Corporate advertising costs = $860,000
Division A $4,900,000
Division B $19,600,000
Number of ads run on Division A products 600
Number of ads run on Division B products 4400
Assume that customers with higher revenues benefited more from corporate advertising costs than customers with lower revenues. What is the allocated corporate costs for Division B?
| A. | $172,000 | |
| B. | $215,000 | |
| C. | $688,000 | |
| D. | $756,800 |
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Accounting
Authors: Charles T. Horngren, Walter T. Harrison
7th Edition
0132439603, 9780132439602
