Question
Silver Chariots Trucking Company incurred $5,000 of indirect advertising costs for its operations. The following data have been collected for 2018 for its three departments:
Silver Chariots Trucking Company incurred $5,000 of indirect advertising costs for its operations. The following data have been collected for 2018 for its three departments:
| New Trucks | Used Trucks | Parts and Service | |
| Sales | $50,000 | $35,000 | $15,000 |
| Direct advertising costs | $ 2,500 | $ 2,000 | $ 500 |
| Newspaper ad space | 60% | 35% | 5% |
Required: Determine the costs assigned to each department using the following activity drivers:
| a. | Sales |
| b. | Direct advertising costs |
| c. | Newspaper ad space |
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Core Concepts Of Accounting Information Systems
Authors: Nancy A. Bagranoff, Mark G. Simkin, Carolyn Strand Norman
11th Edition
9780470507025, 0470507020
