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)

a.$12,000

b.$6,000

c.$3,000

d.$3,273

Garden of Eden Company manufactures two products, Brights and Dulls, from a joint process. A production run costs $50,000 and results in 250 units of Brights and 1,000 units of Dulls. Both products must be processed past the split-off point, incurring separable costs for Brights of $60 per unit and $40 per unit for Dulls. The market price is $250 for Brights and $200 for Dulls. What is the gross profit for Dulls assuming the constant gross margin percentage method is used?

a.$120,000

b.$150,000

c.$37,500

d.$200,000