Problem
Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: Expense Basis for allocation Amount Rent Square feet of floor space $37,000 Advertising Amount of dollar sales $56,000 Administrative Number of employees $84,000 The following information is available for its three operating (sales) departments: Department Square Feet Dollar Sales Number of employees A 4,300 $319,000 19 B 4,700 $339,000 21 C 4,900 $472,000 23 Totals 13,900 $1,130,000 63. What is the total advertising expense allocated to Department C?