Wehr Company Has Two Departments Total Company-Wide Advertising Costs Are $300,000

Multiple Choice

Wehr Company has two departments.Relevant information is presented below:
$$\begin{array}{l}&\text { Department } 1&\text { Department } 2\\\text { Budgeted total assets } & \$ 400,000 & \$ 500,000 \\\text { Actual total assets } & \$ 340,000 & \$ 450,000 \\\text { Budgeted sales } & \$ 400,000 & \$ 2,000,000 \\\text { Actual sales } & \$ 300,000 & \$ 2,100,000\end{array}$$
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 by $12,500
B) increase by $25,000
C) decrease by $12,500
D) decrease by $25,000