Silver Chariots Trucking Company incurred $5,000 of indirect advertising costs for its operations. The following data have been collected for 2018 for its three departments: $\begin{array}{lrrr}&&&\text { Partsand }\
&\text { New Trucks} &\text { Used Trucks }&\text { Service }\
\text { Sales } & \$ 50,000 & \$ 35,000 & \$ 15,000 \
\text { Direct advertising costs } & \$ 2,500 & \$ 2,000 & \$ 500 \
\text { Newspaper ad space } & 60 \% & 35 \% & 5 \%
\end{array}$
Required:
Determine the costs assigned to each department using the following activity drivers:
a.Sales
b.Direct advertising costs
c.Newspaper ad space

Question

Silver Chariots Trucking Company incurred $5,000 of indirect advertising costs for its operations. The following data have been collected for 2018 for its three departments: $\begin{array}{lrrr}&&&\text { Partsand }\
&\text { New Trucks} &\text { Used Trucks }&\text { Service }\
\text { Sales } & \$ 50,000 & \$ 35,000 & \$ 15,000 \
\text { Direct advertising costs } & \$ 2,500 & \$ 2,000 & \$ 500 \
\text { Newspaper ad space } & 60 \% & 35 \% & 5 \%
\end{array}$ 
Required:
Determine the costs assigned to each department using the following activity drivers: 
a.Sales
b.Direct advertising costs
c.Newspaper ad space

Quizplus · Accepted Answer

The Answer of Silver Chariots Trucking Company incurred $5,000 of indirect advertising costs for its operations. The following data have been collected for 2018 for its three departments: $\begin{array}{lrrr}&&&\text { Partsand }\
&\text { New Trucks} &\text { Used Trucks }&\text { Service }\
\text { Sales } & \$ 50,000 & \$ 35,000 & \$ 15,000 \
\text { Direct advertising costs } & \$ 2,500 & \$ 2,000 & \$ 500 \
\text { Newspaper ad space } & 60 \% & 35 \% & 5 \%
\end{array}$ 
Required:
Determine the costs assigned to each department using the following activity drivers: 
a.Sales
b.Direct advertising costs
c.Newspaper ad space

Silver Chariots Trucking Company Incurred $5,000 of Indirect Advertising Costs