A1A Manufacturing has four divisions: Acme, Dune, Stark, and Brothers. Corporate headquarters is in Regina. A1A...
8:36 Done Exercise Cost Allocation2.docx 14-17 Cost allocation and decision making. Greenbold Manufacturing has four divisions named after its locations: Arizona, Colorado, Delaware, and Florida. Corporate headquarters is in Minnesota. Greenbold corporate headquarters incurs $5,600,000 per period, which is an indirect cost of the divisions. Corporate headquarters currently allocates this cost to the divisions based on the revenues of each division. The CEO has asked each division manager to suggest an allocation base for the indirect headquarters costs from among...
Holbrook Corporation has three divisions: pulp, paper, and fibers. Holbrook's new controller, Eric Mayer, is reviewing the allocation of fixed corporate-overhead costs to the three divisions. He is presented with the following information for each division for 2013: Pulp Paper Fibers Revenues $8,800,000 $16,800,000 $26,900,000 Direct manufacturing costs 3,500,000 8,400,000 10,600,000 Division administrative costs 3,000,000 1,200,000 5,800,000 Division margin $2,300,000 $7,200,000 $10,500,000 Number of employees 390 260 650 Floor space (square feet) 28,600 20,130 61,270 Until now, Holbrook Corporation has...
Bright Corporation is organized into two geographic divisions (East and West) and a corporate headquarters. Late in year 1, the Bright Corporation CFO prepared financial operating plans (budgets) for the two divisions, shown as follows. Revenues Direct division costs Operating profit before allocation East $ 2,080,000 1,248,000 $ 832,000 West $3,120,000 1,456,000 $1,664,000 Corporate overhead costs are expected to be $936,000 in year 2. Of the $936,000, $520,000 is fixed and $416,000 is variable, with respect to revenue. Division managers...
Stable Enterprises is organized into two geographic divisions (Asia and Europe) and a corporate headquarters. Late in year 7, the Stable Finance Department prepared financial operating plans (budgets) for the two divisions, shown as follows (in thousands of dollars). Revenues Direct division costs Operating profit before allocation Asia $50,600 25,300 $25,300 Europe $64,400 38,640 $25,760 Corporate overhead costs (in thousands of dollars) are expected to be $30,000 in year 8. Of the $30,000, $18,500 is fixed and $11,500 is variable,...
Bright Corporation is organized into two geographic divisions (East and West) and a corporate headquarters. Late in year 1, the Bright Corporation CFO prepared financial operating plans (budgets) for the two divisions, shown as follows. Revenues Direct division costs Operating profit before allocation East $2,480,000 1,488,000 $ 992,000 West $3,720,000 1,736,000 $1,984,000 Corporate overhead costs are expected to be $1,116,000 in year 2. Of the $1,116,000, $620,000 is fixed and $496,000 is variable, with respect to revenue. Division managers are...
Stable Enterprises is organized into two geographic divisions (Asia and Europe) and a corporate headquarters. Late in year 7, the Stable Finance Department prepared financial operating plans (budgets) for the two divisions, shown as follows (in thousands of dollars). Asia Europe Revenues $ 28,600 $ 36,400 Direct division costs 14,300 21,840 Operating profit before allocation $ 14,300 $ 14,560 Corporate overhead costs (in thousands of dollars) are expected to be $15,000 in year 8. Of the $15,000, $8,500 is fixed...
Bright Corporation is organized into two geographic divisions (East and West) and a corporate headquarters. Late in year 1, the Bright Corporation CFO prepared financial operating plans (budgets) for the two divisions, shown as follows. Revenues Direct division costs Operating profit before allocation East $2,720,000 1,632,000 $1,088,000 West $4,080,000 1,904,000 $2,176,000 Corporate overhead costs are expected to be $1,224,000 in year 2. Of the $1,224,000, $680,000 is fixed and $544,000 is variable, with respect to revenue. Division managers are evaluated...
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ct costs based on one of the following: direct costs, floor space, or the number of employ Data Table pal Revenues Hotel Restaurant 17,592,000 $ 7,936,000 $ 9,875,000 4,310,600 7,717,000 $ 3,625,400 $ Casino 12,420,000 4,420,800 7,999 200 calcu Direct costs is $ Segment margin oundc ht Print Done 000 4,310,600 3,625,400 4,420,800 7.999,200 18,606,400 19341600...
ents of $ 1 00 and me Ribeiro Manufacturing Company has four operating divisions. During the first quarter of 2020, the company reported aggregate increm divisional rests: Division 1 11111 IV $509,500 $418,600 $313,300 $179, 100 Cost of goods sold 289,700 249.000 204.600 154.800 Selling and administrative expenses 60,100 75.400 67,400 75.000 Income (loss) from operations $159,700 594,200 $(20,700) $50.500) The analysis reveals the following percentages of variable costs in each division Cost of goods sold selling and administrative expenses...
Ribeiro Manufacturing Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from certions of $12.700 d divisional results: o Division III TV Sales $509,500 $418,600 $313,300 $179,300 Cost of goods sold 289,700 249,000 266,600 154,800 Selling and administrative expenses 60,100 75,400 67,400 75,000 Income (loss) from operations $159,700 594,200 $(20,700) S(50,500) The analysis reveals the following percentages of variable costs in each division 1 Cost of goods sold 70% Selling and administrative expenses...