Answer:
Pepper Department Store
The total advertising expense allocated to Department B is:
= $24,000.
Explanation:
a) Data and Calculations:
Expense            Basis for allocation               Amount 
Rent                   Square feet of floor space $ 49,000 
Advertising        Amount of dollar sales      $ 80,000 
Administrative   Number of employees     $ 120,000 
Department   Square Feet   Dollar Sales   Number of employees 
A                         5,500            $ 355,000              31 
B                         5,900            $ 375,000              33 
C                         6,100            $ 520,000              35 
Totals               17,500          $ 1,250,000              99 
Advertising Expense Allocation:
Department A = $22,720 (355,000/$1,250,000 * $80,000)
Department B = $24,000 ($375,000/$1,250,000 * $80,000)
Department C = $33,280 ($520,000/$1,250,000 * $80,000)