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Question - Admin. Cost are allocated proportionate to net sales.
Admin. Cost: 60,000
Revenues: Department 1: 500,000
Department 2: 300,000
Department 3: 1,000,000
Sales Return Department 2: 50,000
Required - What is the amount to allocate to department 1 and department 2?
A) 16,216 and 8,571
B) 16,667 and 10,000
C) 17,143 and 11,351
D) 20,000 and 20,000
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