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Yo Department Store incurred $8,000 of indirect advertising costs for its operations. The following data have been collected for 2013 for its three departments. Shoes
Yo Department Store incurred $8,000 of indirect advertising costs for its operations. The following data have been collected for 2013 for its three departments.
Shoes | Cosmetics | Crafts | |
Sales | $120,000 | $100,000 | $100,000 |
Direct advertising costs | $9,000 | $7,000 | $4,000 |
Newspaper ad space | 60% | 20% | 20% |
How much of the indirect advertising costs will be allocated to the Crafts Department if newspaper ad space is the activity driver?
A. $8,000 B. $1,600 C. $800 D. $6,400
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