Question
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 $37,000 Advertising Amount of dollar sales $56,000 Administrative Number of employees $84,000 The following information is available for its three operating (sales) departments: Department Square Feet Dollar Sales Number of employees A 4,300 $319,000 19 B 4,700 $339,000 21 C 4,900 $472,000 23 Totals 13,900 $1,130,000 63 What is the total advertising expense allocated to Department C? $56,000. $23,391 . $26,891. $25,191. $11,400.
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