Giardin Outdoors is a recreational goods retailer with two divisions: Online and Stores. The two divisions both use the services of the corporate Finance and Accounting (F and A) Department. Annual costs of the F and A Department total $5.275 million a year. Managers in the two operating divisions are measured based on division operating profits. The following selected data are available for the two operating divisions: Online. Stores Fixed Variable Total Revenues ($000) $ 77,100 42,900 Required: Determine the cost allocation if $3.875 million of the F and A costs are fixed and allocated on the basis of revenues, and the remaining costs, which are variable, are allocated on the basis of transactions. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. $ Transactions (000) 1,816.5 658.5 Online 0 $ Stores 0

Giardin Outdoors is a recreational goods retailer with two divisions: Online and Stores. The two divisions both use the services of the corporate Finance and Accounting (F and A) Department. Annual costs of the F and A Department total $5.275 million a year. Managers in the two operating divisions are measured based on division operating profits. The following selected data are available for the two operating divisions: Online. Stores Fixed Variable Total Revenues ($000) $ 77,100 42,900 Required: Determine the cost allocation if $3.875 million of the F and A costs are fixed and allocated on the basis of revenues, and the remaining costs, which are variable, are allocated on the basis of transactions. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. $ Transactions (000) 1,816.5 658.5 Online 0 $ Stores 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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