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alisha [4.7K]
3 years ago
6

A retail store has three departments, S, T, and U, and does general advertising that benefits all departments. Advertising expen

se 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.)
Business
1 answer:
lions [1.4K]3 years ago
6 0

Answer:

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

<em>The correct answer to this is $21750</em>

Explanation:

<em>Given that,</em>

<em>Department S           $111,000</em>

<em>Department T           213,150</em>

<em>Department U           146,250</em>

<em>The next step is to calculate Advertising Expenses</em>

<em> Total</em>

<em>Department S           $111,000</em>

<em>Department T           213,150</em>

<em>Department U           146,250</em>

<em>Total   =                     470400</em>

<em>Next step is to allocate  advertising expense to Department T based on departmental sales.</em>

<em>Department T      =     48000 x 213150/470400</em>

<em>                              =     $21750</em>

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