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Luxurious Department Store incurred $6,000 of indirect advertising costs for its operations. The following data has been collected for 2018 for its three departments: Sportswear
Luxurious Department Store incurred $6,000 of indirect advertising costs for its operations. The following data has been collected for 2018 for its three departments:
Sportswear | Lingerie | Appliances | |
Sales | $160,000 | $120,000 | $120,000 |
Direct advertising costs | $ 7,000 | $ 12,000 | $ 3,000 |
Newspaper ad space | 62% | 20% | 18% |
How much of the indirect advertising costs will be allocated to the Lingerie Department if direct advertising costs is the activity driver? (Round to the nearest dollar if necessary)
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