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Luxurious Department Store incurred $6,000 of indirect advertising costs for its operations. The following data have been collected for the year for its three departments:
Luxurious Department Store incurred $6,000 of indirect advertising costs for its operations. The following data have been collected for the year for its three departments: Sales Direct advertising costs Newspaper ad space Sportswear Lingerie Appliances $160,000 $120,000 $120,000 $7,000 62% $12,000 20% $3,000 18% How much of the indirect advertising costs will be allocated to the Sportswear Department if newspaper ad space is the activity driver? Oa. $4.340 Ob. $3.720 Oc. $2.280 Od. $6,000
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