A company has two departments, Y and Z that incur advertising expenses of $23,000. Advertising expenses are allocated based on sales. Department Y has sales of $560,000 and Department Z has sales of $840,000. The advertising expense allocated to Departments Y and Z, respectively, are:

Advertising expenses refers to those expenses which is done by the companies on the advertisement for the promotion of their product. The Advertisement is done through television ads, hoardings, pamphlets etc. all of these incurs the cost to the company.

According to the question, The advertising expenses of both the departments can be calculated as follows:-

Advertising expenses of department Y = Sales/ Total Sales* Total expenses

= $560,000 / 1400000*23000

= $9200

Advertising expenses of department Z = $840,000 / 1400000*23000

= $13800

Thus The advertising expense allocated to Departments Y and Z, respectively, are $9200 and $13800.

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