Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data:CenterBudgeted Revenue Actual Revenue Budgeted Direct Costs Actual Direct Costs Downtown$320,000 $340,200  $300,000   $300,000  Irvine 560,000  534,600   510,000    440,000  H.Beach 720,000  745,200   690,000    740,000   Totals$1,600,000 $1,620,000  $1,500,000   $1,480,000  WO's advertising, which is handled b y the home office, is not reflected in the preceding figures and amounted to $60,000.If advertising expense were allocated to centers based on actual center profitability, the amount of advertising expense allocated to the Irvine center would be closest to:

A. $30,000.
B. $21,000.
C. $19,800.
D. $40,543.
E. None of the answers is correct.


Answer: D

Business

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