Wilson Company has two departments, Arrive and Go.Relevant information is presented below: $\begin{array} { l l l } &\text { Arrive } & \text { Go }\\text { Budgeted Sales } & \$ 400,000 & \$ 2,000,000 \ \text { Actual Sales } & \$ 300,000 & \$ 2,100,000 \end{array}$ Total advertising expense is $300,000.If the allocation base is changed from budgeted sales to actual sales, the amount allocated to the Arrive Department will _____.

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Initially, the allocation of advertising expense based on budgeted sales would be: $\frac{400,000}{400,000 + 2,000,000} = \frac{400,000}{2,400,000} = \frac{1}{6}$ of $300,000 = $50,000 to Arrive. Using actual sales, the allocation changes to: $\frac{300,000}{300,000 + 2,100,000} = \frac{300,000}{2,400,000} = \frac{1}{8}$ of $300,000 = $37,500 to Arrive. The difference is $50,000 - $37,500 = $12,500, indicating a decrease.

Wilson Company Has Two Departments, Arrive and Go Total Advertising Expense Is $300,000