Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments:ExpenseBasis for allocation Amount RentSquare feet of floor space $24,000 AdvertisingAmount of dollar sales $30,000 AdministrativeNumber of employees $45,000 The following information is available for its three operating (sales) departments: Department Square Feet Dollar Sales Number of 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 B?
A. $12,500.
B. $7,500.
C. $10,800.
D. $ 9,000.
E. $30,000.
Answer: D
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