Wilson Company has two departments.Relevant information is presented below: 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 $12,500
B)increase $25,000
C)decrease $12,500
D)decrease $25,000

Question

Wilson Company has two departments.Relevant information is presented below:  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 $12,500 
B)increase $25,000 
C)decrease $12,500 
D)decrease $25,000

Quizplus · Accepted Answer

The Answer of Wilson Company has two departments.Relevant information is presented below:  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 $12,500 
B)increase $25,000 
C)decrease $12,500 
D)decrease $25,000

Wilson Company Has Two Departments