Peter's Corporation

Peters Corporation has two operating departments, Department A and Department B, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: Total Office Expenses Salaries Depreciation Advertising $31,000 $21,000 $41,000 Allocation Basis Number of Employees Cost of goods sold Net Sales Department A Department B Total 800 1200 2000 Item Number of employees Net Sales Cost of goods sold $330,000 $79,800 $495.000 $130,200 $825,000 $210,000 The amount of advertising that should be allocated to Department B for the current period is: $48,800 $24,600 $57,600 $330,000