Question

A retail store has three departments, S, T, and U, and does general advertising that benefits all departments. Advertising expense totaled $48,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department T based on departmental sales. (Do not round your intermediate calculations.)

Answer 1

Answer:

From the question given, the values for department S, T, U was not stated, due to my findings and research i solved the example.

The correct answer to this is $21750

Explanation:

Given that,

Department S           $111,000

Department T           213,150

Department U           146,250

The next step is to calculate Advertising Expenses

Total

Department S           $111,000

Department T           213,150

Department U           146,250

Total   =                     470400

Next step is to allocate  advertising expense to Department T based on departmental sales.

Department T      =     48000 x 213150/470400

                             =     $21750