Wilson Company Has Two Departments, Arrive and Go Total Advertising Expense Is $300,000

Multiple Choice

Wilson Company has two departments, Arrive and Go.Relevant information is presented below: $\begin{array} { l l l } &\text { Arrive } & \text { Go }\\\text { Budgeted Sales } & \$ 400,000 & \$ 2,000,000 \\ \text { Actual Sales } & \$ 300,000 & \$ 2,100,000 \end{array}$ Total advertising expense is $300,000.If the allocation base is changed from budgeted sales to actual sales, the amount allocated to the Arrive Department will _____.

A) increase by $12,500
B) decrease by $12,500
C) increase by $25,000
D) decrease by $25,000