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 Square feet of floor space Amount Rent $29,000 $40,000 $60,000 Advertising Administrative Amount of dollar sales Number of employees The following information is available for its three operating (sales) departments: Dollar Number of Square Sales Department Feet p1yees 3,500 $ 295,000 3,900 $ 315,000 4,100 $ 440,000 11 13 15 Totals 11,500 $1,050,000 39 39 What is the total advertising expense allocated to Department B? Multiple Choice $40,000. $12,000. $20,262 $40,000. $12,000. $20,262 $18,562. $9,000. Lattimer Company had the following results of operations for the past year. Sales (15,000 units at $11.70) Variable manufacturing costs $ 175,500 $93,000 Fixed manufacturing costs Selling and administrative expenses (all fixed) 16,500 31,500 (141,000) $ 34, 500 Operating income A foreign company offers to buy 4,400 units at $6.90 per unit. In addition to existing costs, selling these units would add a $0.19 selling cost for export fees. Lattimer's annual production capacity is 25,000 units. If Lattimer accepts this additional business, the special order will yield a: Multiple Choice $1,760 loss. $2,596 loss. $2,244 profit $3,080 profit. $6,996 loss