Kia Corporation has two departments, A and B. Central costs could be allocated to the...
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Accounting
Kia Corporation has two departments, A and B. Central costs could be allocated to the two departments in various ways. Square footage of department A and B 6,000 and 18,000 square feet respectively, Number of employees of department A and B 1,120 and 480 respectively, and sales of department A and B $400,000 and $2,000,000 respectively. If advertising expense of $300,000 is allocated on the basis of sales, the amount allocated to Department B would be:
a.
$210,000
b.
$250,000
c.
$50,000
d.
$75,000
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