Answer:
The correct answer is $170,000.
Explanation:
According to the scenario, computation of the given data are as follows:
We can calculate the cost allocated to Marketing by using following formula:
Total cost allocated = Fixed cost + Variable cost
Where, Fixed cost = (3,600,000 ÷ 5,400,000) × $120,000
= $80,000
And , Variable cost = $0.025 × 3,600,000 = $90,000
By putting the value, we get
Total cost allocated = $80,000 + $90,000
= $170,000
