Wehr Company has two departments. Relevant information is presented below: Department 1 Department 2 Budgeted total assets $400,000 $500,000 Actual total assets $340,000 $450,000 Budgeted sales $400,000 $2,000,000 Actual sales $300,000 $2,100,000 Total company - wide advertising costs are $300,000. Assume the allocation base is changed from budgeted sales to actual sales. The amount of advertising costs allocated to Department 1 will od B ts O A. decrease by $25,000 B. increase by $25,000 O c. increase by $12,500 OD. decrease by $12,500 nd . The phrase "cost application" refers to the allocation of the total departmental costs to O A. revenue - producing departments B. service departments C. revenue - producing products D. service departments and producing departments ethod s ... B. costs