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
Correct Answer:

Verified
Correct Answer:
Verified
Q128: A company has two distribution channels: wholesale
Q129: Managers who utilize customer profitability charts should
Q130: The static-budget variance will be favorable, when
Q131: Superior Electronics manufactures TVs and DVDRs. During
Q132: Which of the following is a reason
Q134: The sales-mix variance is calculated by _.<br>A)
Q135: Market-share variance = $380,000 (U); Market-size variance
Q136: The sales-quantity variance can be decomposed into
Q137: Which of the following is true about
Q138: _ categorizes costs related to customers into