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

Multiple Choice

Johnson Company has two departments, Arrive and Go. Relevant information is presented below: $$\begin{array} { l l l } & \text { Arrive } & \text { G } 0 \\\text { Budgeted Sales } & \$ 400,000 & \$ 2,000,000 \\\text { Actual Sales } & \$ 300,000 & \$ 2,100,000\end{array}$$ 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) decrease by $25,000
D) increase by $25,000