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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
Pepper Department Store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: Expense Rent Advertising Basis for allocation: Square feet of floor space Amount $ 30,000 Amount of dollar sales. Number of employees 42,000 Administrative The following information is available for its three operating (sales) departments: 63,000 Department A B C Square Feet 3,600 Dollar Sales $ 298,000 Number of employees 12 4,000 $318,000 14 4,200 $ 444,000 16 11,800 $ 1,060,000 42 Totals What is the total advertising expense allocated to Department B?
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