Bob's Warehouse Allocates Advertising Expenses to Its Two Departments, a and B

Multiple Choice

Bob's Warehouse allocates advertising expenses to its two departments, A and B, on the basis of sales. For the current year the sales for department A are $300 000 and for department B $200 000 and total advertising expenses are $12 600. The amount allocated to the two departments is:

A) A $9 450; B $3 150
B) A $6 300; B $6 300
C) A $5 040; B $7 560
D) A $7 560; B $5 040