Yo Department Store incurred 4000 of indirect advertising co

Yo Department Store incurred $4,000 of indirect advertising costs for its operations. The following data has been collected for 2011 for its three departments: Shoes Cosmetics Crafts Sales $160,000 $120,000 $120,000 Direct advertising costs $ 7,000 $ 10,000 $ 3,000 Newspaper ad space 62% 20% 18% How much of the indirect advertising costs will be allocated to the Shoes Department if newspaper ad space is the activity driver?

Solution

indirect Advertising cost allocated to shoe department 4000*62% 2480answer