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 $5.260 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 Revenues ($000) $ 76,500 42,300 Transactions (000) 1,666.5 583.5 Required: a. What is the F and A cost that is charged to each division if divisional revenues are used as the allocation basis? b. What is the F and A cost that is charged to each division if the the number of transactions is used as the allocation basis? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B What is the F and A cost that is charged to each division if the the number of transactions is used as the allocation basis? Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar. Division F and A Cost Online $ Stores $ 3,896,937 × 1,363,063 x < Required A Required B > 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 $5.260 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 Required: Revenues ($000) $ 76,500 42,300 Transactions (000) 1,666.5 583.5 a. What is the F and A cost that is charged to each division if divisional revenues are used as the allocation basis? b. What is the F and A cost that is charged to each division if the the number of transactions is used as the allocation basis? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B What is the F and A cost that is charged to each division if divisional revenues are used as the allocation basis? Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar. Division F and A Cost Online $ 3,387,114 x Stores $ 1,872,886 x < Required A Required B >
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 $5.260 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 Revenues ($000) $ 76,500 42,300 Transactions (000) 1,666.5 583.5 Required: a. What is the F and A cost that is charged to each division if divisional revenues are used as the allocation basis? b. What is the F and A cost that is charged to each division if the the number of transactions is used as the allocation basis? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B What is the F and A cost that is charged to each division if the the number of transactions is used as the allocation basis? Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar. Division F and A Cost Online $ Stores $ 3,896,937 × 1,363,063 x < Required A Required B > 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 $5.260 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 Required: Revenues ($000) $ 76,500 42,300 Transactions (000) 1,666.5 583.5 a. What is the F and A cost that is charged to each division if divisional revenues are used as the allocation basis? b. What is the F and A cost that is charged to each division if the the number of transactions is used as the allocation basis? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B What is the F and A cost that is charged to each division if divisional revenues are used as the allocation basis? Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar. Division F and A Cost Online $ 3,387,114 x Stores $ 1,872,886 x < Required A Required B >
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing
Section: Chapter Questions
Problem 11E: Xenold, Inc., manufactures and sells cooktops and ovens through three divisions: Home, Restaurant,...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,