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Wilson Company Has Two Departments

Question 30

Multiple Choice

Wilson Company has two departments.Relevant information is presented below: Wilson Company has two departments.Relevant information is presented below: Total company-wide advertising costs are $300,000.Assume the allocation base is changed from budgeted sales to actual sales.The amount of advertising costs allocated to Department 1 will ________. A) increase $12,500 B) increase $25,000 C) decrease $12,500 D) decrease $25,000 Total company-wide advertising costs are $300,000.Assume the allocation base is changed from budgeted sales to actual sales.The amount of advertising costs allocated to Department 1 will ________.


A) increase $12,500
B) increase $25,000
C) decrease $12,500
D) decrease $25,000

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