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Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: Expense Basis

Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments:

Expense Basis for allocation Amount
Rent Square feet of floor space $24,000
Advertising Amount of dollar sales $30,000
Administrative Number of employees $45,000

The following information is available for its three operating (sales) departments:

Department Square Feet Dollar Sales Number of employees
A 3,000 $280,000 6
B 3,400 $300,000 8
C 3,600 $420,000 10
Totals 10,000 $1,000,000 24

What is the total advertising expense allocated to Department C?

$30,000.

$9,000.

$12,500.

$10,800.

$7,500.

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