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Dartmouth Building Products Inc. Provides the Following Information

Question 133

Multiple Choice

Dartmouth Building Products Inc. provides the following information.
Corporate advertising costs = $850,000
Division A - $5,000,000
Division B - $20,000,000
Number of ads run relevant on Division A products 500
Number of ads run relevant to Division B products 3667
Assume that customers with higher revenues benefited more from corporate advertising costs than customers with lower revenues. What is the allocated corporate costs for Division A?


A) $748,000
B) $212,500
C) $170,000
D) $850,000

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