A retail store has three departments, S, T, and U, and does general advertising that benefits all departments. Advertising expense totaled $50,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department T based on departmental sales. Department S $109,000
Department T 218,850
Department U 142,150
Total 470,000

$23,285.64

Explanation:

The rate of allocation based on sales = Advertising expense/Total sales

= $50,000/$470,000

= 0.10638298

= 10.64%

Allocation to department T based on sales = Sales of department T * Rate of allocation

= $218,850 * 10.64%

= $23,285.64

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answer; lags, push the econ below the natural level of output;