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Advertising Expense Totaled $60,000

Question 67

Multiple Choice

Advertising expense totaled $60,000. If indirect advertising costs are allocated based on gross sales per department, what amount would be allocated to the watches department if $5,000 of advertising is indirect? Gross Sales: jewelry, $80,000; glassware, $30,000; watches, $20,000. (Round any percentages two decimal places, X.XX%, and round your final answer to the nearest dollar.)


A) $5,000
B) $769
C) $9,231
D) $6,667

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