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Advertising Expense Totaled $20,000

Question 76

Multiple Choice

Advertising expense totaled $20,000.If indirect advertising costs are allocated based on gross sales per department,what amount would be allocated to the glassware department if $5,000 of advertising is indirect?
Gross Sales: jewelry,$80,000; glassware,$30,000; watches,$40,000.


A) $1,000
B) $1,333
C) $2,500
D) $2,667

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