Question

W2 Online teachinx : Cengage learning Assignment/take Assignment Main.doinprogress true eBook Show Me How Calculator Allocating Operating Expense-Relative Net Sales Hayley Doll owns a car stereo store. She has divided her store into three departments. Net sales for the month of July we as follows: Due Standard $33,600 38.400 48.000 Economy Advertising expense for uly was $20,000 Allocate the advertising expense among the three departments on the basis of relative net sales. Advertising Expense Dele Standard Economy Total Each department's percentage of total net sales x Total advertising expense located department advertising expense

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

A LIFE н 1 Answer 2 In the given question, we have to allocate the advertising expense to products on the basis of net sales 3 4 Total net sales = 33600+38400+48000 5 = $ 120000 6 7 Advertising expense allocated to deluxe = Net sales of deluxe/ total net sales* advertising expense 8 = 33600/120000*20000 9 = $ 5600 10 11 Advertising expense allocated to standard = Net sales of standard/ total net sales* advertising expense 12 = 38400/120000*20000 13 = $ 6400 14 15 Advertising expense allocated to economy = Net sales of economy/total net sales* advertising expense 16 = 48000/120000*20000 17 = $ 8000 18 20 19 Thus the final answer is Advertising expense 21 Deluxe 5600 22 Standard 6400 23 Economy 8000 24 Total 20000