Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $102,000. Sales for its operating departments follow. Department 1 2 3 Sales $ 357,000 571,200 261,800 How much advertising cost is allocated to each operating department if the allocation is based on departmental sales? (Do not round your intermediate calculations.) Department 1 2 3 Total Sales Percent of Total % % % % Cost Allocated

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are
$102,000. Sales for its operating departments follow.
Department
1
2
3
Sales
$ 357,000
571,200
261,800
How much advertising cost is allocated to each operating department if the allocation is based on departmental sales? (Do not round
your intermediate calculations.)
Department
1
2
3
Total
Sales
Percent of Total Cost Allocated
%
%
%
%
Transcribed Image Text:Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $102,000. Sales for its operating departments follow. Department 1 2 3 Sales $ 357,000 571,200 261,800 How much advertising cost is allocated to each operating department if the allocation is based on departmental sales? (Do not round your intermediate calculations.) Department 1 2 3 Total Sales Percent of Total Cost Allocated % % % %
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