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 $5.225 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: Revenues ($000) $ 75,100 40,900 Online Stores Transactions (000) 1,316.5 408.5 Required: Determine the cost allocation if $3.825 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.

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 $5.225 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: Revenues ($000) $ 75,100 40,900 Online Stores Transactions (000) 1,316.5 408.5 Required: Determine the cost allocation if $3.825 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.

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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