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A company has two departments, Y and Z that incur advertising expenses of $8,000. Advertising expenses are allocated based on sales. Department Y has sales of $400,000 and Department Z has sales of $600,000. The advertising expense allocated to Departments Y and Z, respectively, are: _________

Answer :

Parraingo

Based on the fact that advertising expenses are allocated based on sales, the advertising expenses to Departments Y and Z will be:

  • Department Y - $7,200
  • Department Z - $10,800

What would be the advertising cost for Department Y?

This can be found as:

= Department Y sales / (Total sales) x Advertising expenses

= 400,000 / 1,000,000 x 18,000

= $7,200

What would be the advertising cost for Department Z?

= 600,000 / 1,000,000 x 18,000

= $10,800

Find out more on allocating expenses at https://brainly.com/question/16087693.

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