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.)

Question

Scarlett Richard

Business

28 June, 15:03

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.)

+3

Answers (1)

Know the Answer?

Emeline · Answer 1

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