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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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