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Question
Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments:| Expense | Basis for allocation | Amount |
| Rent | Square feet of floor space | $24,000 |
| Advertising | Amount of dollar sales | $30,000 |
| Administrative | Number of employees | $45,000 |
The following information is available for its three operating (sales) departments:
| Square | Dollar | Number of | |
| Department | Feet | Sales | employees |
| A | 3,000 | $280,000 | 6 |
| B | 3,400 | $300,000 | 8 |
| C | 3,600 | $420,000 | 10 |
| Totals | 10,000 | $1,000,000 | 24 |
What is the total advertising expense allocated to Department C?
A.$30,000.
B.$ 9,000.
C.$12,500.
D.$10,800.
E.$ 7,500.
Answer
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