Question

Net Departmental sales for the month
of July are as follows: Deluxe = Rs.
36,000; Standard = Rs. 30,000;
Economy = Rs. 54,000. Advertising
expense for July was Rs. 24,000.
Advertising Expense allocated to Deluxe
is
O a. Rs. 24,000
O b. Rs. 7,200
O c. Rs. 8,000
O d. Rs. 3,600​

Answer 1

Answer:

I think answer is

b. RS. 7,200

plzzzz follow mi yarrrr

Answer 2

Option b) ₹7200 will be correct.

The Organization distributes departmental costs on some basis such as sales, purchase, floor space, no. of lighting bulb, no. of employees etc., and if the cost can't be distributable in any of these basis then it will be taken to combined profit and loss account.

here, the distribution factor is advertising;

so the advertising expense allocated to deluxe will be

                                         = 36000*7200/120000

                                          = ₹7200.