Feeley Bakery makes baked goods for grocery stores, and has three divisions: bread, cake, and doughnuts. Each division is run and evaluated separately, but the main headquarters incurs costs that are indirect costs for the divisions. or parentheses.) Segment margin Allocated headquarter costs: Human resources Accounting department Rent and depreciation Other $ Operating income (loss) Bread Segment margin Allocated headquarter costs Operating income (loss) Requirement 2. Allocate headquarter costs to the individual divisions using the proposed allocatio proportions to three decimal places. Enter operating losses with minus signs or parentheses.) Bread Cake Doughnuts $ 6,500,000 $ 1,700,000 4,800,000 $ 6,500,000 $ 950,000 756000 600,000 200,000 Cake 3994000 1,300,000 $ 1,700,000 (400,000) $ 1,300,000 $ Doughnuts 237,500 168000 240,000 200,000 454500 5,650,000 1,700,000 3,950,000 5,650,000 712,500 476000 360,000 200,000 3901500 Data table Human resources (HR) costs Accounting department costs Rent and depreciation Other Total revenues $ 5,100,000 Total costs The Feeleyupper management currently allocates this cost to the divisions equally. One division managers has done some research on activity-based costing and proposes the different allocation bases for the different indirect costs - number of employees for HR c total revenues for accounting department costs, square feet of space for rent and depreciation costs, and equal allocation among the divisions of "other" costs. Informatio the three divisions follows: Direct costs Segment margin Number of employees Square feet of space Bread $ $ Cake $ 21,400,000 $ 4,600,000 $ 14,900,000 3,300,000 6,500,000 $1,300,000 $ 400 1,900,000 1,400,000 1,200,000 600,000 10.000 100 4.000 Doughnuts 13,500,000 7,850,000 5,650,000 300 6.000
Feeley Bakery makes baked goods for grocery stores, and has three divisions: bread, cake, and doughnuts. Each division is run and evaluated separately, but the main headquarters incurs costs that are indirect costs for the divisions. or parentheses.) Segment margin Allocated headquarter costs: Human resources Accounting department Rent and depreciation Other $ Operating income (loss) Bread Segment margin Allocated headquarter costs Operating income (loss) Requirement 2. Allocate headquarter costs to the individual divisions using the proposed allocatio proportions to three decimal places. Enter operating losses with minus signs or parentheses.) Bread Cake Doughnuts $ 6,500,000 $ 1,700,000 4,800,000 $ 6,500,000 $ 950,000 756000 600,000 200,000 Cake 3994000 1,300,000 $ 1,700,000 (400,000) $ 1,300,000 $ Doughnuts 237,500 168000 240,000 200,000 454500 5,650,000 1,700,000 3,950,000 5,650,000 712,500 476000 360,000 200,000 3901500 Data table Human resources (HR) costs Accounting department costs Rent and depreciation Other Total revenues $ 5,100,000 Total costs The Feeleyupper management currently allocates this cost to the divisions equally. One division managers has done some research on activity-based costing and proposes the different allocation bases for the different indirect costs - number of employees for HR c total revenues for accounting department costs, square feet of space for rent and depreciation costs, and equal allocation among the divisions of "other" costs. Informatio the three divisions follows: Direct costs Segment margin Number of employees Square feet of space Bread $ $ Cake $ 21,400,000 $ 4,600,000 $ 14,900,000 3,300,000 6,500,000 $1,300,000 $ 400 1,900,000 1,400,000 1,200,000 600,000 10.000 100 4.000 Doughnuts 13,500,000 7,850,000 5,650,000 300 6.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Feeley Bakery makes baked goods for grocery stores, and has three divisions: bread, cake, and doughnuts. Each division is run and evaluated separately, but the main headquarters incurs
costs that are indirect costs for the divisions.
or parentheses.)
Segment margin
Allocated headquarter costs:
Human resources
Accounting department
Rent and depreciation
Other
$
Operating income (loss)
$
Bread
$
Segment margin
Allocated headquarter costs
Operating income (loss)
Requirement 2. Allocate headquarter costs to the individual divisions using the proposed allocatio
proportions to three decimal places. Enter operating losses with minus signs or parentheses.)
Doughnuts
6,500,000 $
1,700,000
4,800,000 $
Bread
6,500,000 $
Cake
950,000
756000
600,000
200,000
3994000
1,300,000 $
1,700,000
(400,000) $
Cake
1,300,000 $
Doughnuts
237,500
168000
240,000
200,000
454500
5,650,000
1,700,000
3,950,000
5,650,000
712,500
476000
360,000
200,000
3901500
Data table
1,900,000
1,400,000
1,200,000
600,000
5,100,000
Total costs
The Feeleyupper management currently allocates this cost to the divisions equally. One
division managers has done some research on activity-based costing and proposes the
different allocation bases for the different indirect costs - number of employees for HR c
total revenues for accounting department costs, square feet of space for rent and
depreciation costs, and equal allocation among the divisions of "other" costs. Informatio
the three divisions follows:
Human resources (HR) costs
Accounting department costs
Rent and depreciation
Other
Total revenues
Direct costs
Segment margin
Number of employees
Square feet of space
$
$
Bread
21,400,000 $
14,900,000
6,500,000 $
$
400
10,000
Cake
4,600,000 $
3,300,000
1,300,000 $
100
4,000
Doughnuts
13,500,000
7,850,000
5,650,000
300
6,000
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