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Monday Company Has Two Departments Total Company-Wide Advertising Costs Are $360,000

Question 27

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Monday Company has two departments.Relevant information is presented below:
 Department 1 Department 2 Budgeted total assets $500,000$200,000 Actual total assets $600,000$400,000 Budgeted sales $400,000$2,000,000 Actual sales $200,000$2,100,000\begin{array}{lll}&\text { Department } 1&\text { Department } 2\\\text { Budgeted total assets } & \$ 500,000 & \$ 200,000 \\\text { Actual total assets } & \$ 600,000 & \$ 400,000 \\\text { Budgeted sales } & \$ 400,000 & \$ 2,000,000 \\\text { Actual sales } & \$ 200,000 & \$ 2,100,000\end{array}
Total company-wide advertising costs are $360,000.The advertising costs are allocated based on sales using the preferred approach.What amount of advertising costs is allocated to Department 2?


A) $37,500
B) $50,000
C) $262,500
D) $300,000

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