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.) Department S $ 117,000 Department T 217,750 Department U 145,250 Total $ 480,000

Respuesta :

Answer:

$21,600

Explanation:

Calculation to Allocate advertising expense to Department T based on departmental sales

Allocation of advertising expense to Department T =(217,750/480,000)*48,000

Allocation of advertising expense to Department T =0.45*48,000

Allocation of advertising expense to Department T =$21,600

Therefore the Allocationof advertising expense to Department T based on departmental sales will be $21,600