High Traffic Products Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways. Small Department Large Department Square footage 6,700 17,750 Number of employees 1,000 410 Sales $370,000 $1,800,000 If total advertising expense of $629,300 is allocated on the basis of sales, the amount allocated to the Large Department would be ________. A) $107,300 B) $558,000 C) $522,000 D) $314,650
High Traffic Products Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways. Small Department Large Department Square footage 6,700 17,750 Number of employees 1,000 410 Sales $370,000 $1,800,000 If total advertising expense of $629,300 is allocated on the basis of sales, the amount allocated to the Large Department would be ________. A) $107,300 B) $558,000 C) $522,000 D) $314,650
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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High Traffic Products Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways.
Small Department Large Department
Square footage 6,700 17,750
Number of employees 1,000 410
Sales $370,000 $1,800,000
If total advertising expense of $629,300 is allocated on the basis of sales, the amount allocated to the Large Department would be ________.
A) $107,300
B) $558,000
C) $522,000
D) $314,650
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