Three segments (X, Y and Z) of Truly Company have net sales of $125,000, $105,000,...

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Accounting

Three segments (X, Y and Z) of Truly Company have net sales of $125,000, $105,000, and $170,000, respectively. A decision is made to allocate the pool of $ 40,000 of administrative overhead expenses of the home office to the segments, using net sales as the basis for allocation.

How much of the $40,000 should be allocated to each segment? (Show and label all calculations)

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