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Stohr Company Has Two Departments, New and Old

Question 126

Multiple Choice

Stohr Company has two departments, New and Old. Central costs are allocated to the two departments in various ways. Relevant information is presented below:
Stohr Company has two departments, New and Old. Central costs are allocated to the two departments in various ways. Relevant information is presented below:    -If total advertising expense is $120,000 and it is allocated on the basis of sales, the amount allocated to the Old Department should be A)  $90,000. B)  $36,000. C)  $100,000. D)  $ 20,000.
-If total advertising expense is $120,000 and it is allocated on the basis of sales, the amount allocated to the Old Department should be


A) $90,000.
B) $36,000.
C) $100,000.
D) $ 20,000.

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