Luxurious Department Store Incurred $6,000 of Indirect Advertising Costs for Its

Multiple Choice

Luxurious Department Store incurred $6,000 of indirect advertising costs for its operations. The following data has been collected for 2018 for its three departments: $\begin{array}{lrrr}&\text { Sportswear } &\text { Lingerie} &\text { Appliance: }\\\text { Sales } & \$ 160,000 & \$ 120,000 & \$ 120,000 \\\text { Direct adverti sing costs } & \$ 7,000 & \$ 12,000 & \$ 3,000 \\\text { Newspaper ad space } & 62 \% & 20 \% & 18 \%\end{array}$ How much of the indirect advertising costs will be allocated to the Lingerie Department if direct advertising costs is the activity driver? (Round to the nearest dollar if necessary)

A) $3,000
B) $3,273
C) $6,000
D) $12,000