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 $5.220 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 A Revenues ($000) 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? $ 74,900 40,700 Complete this question by entering your answers in the tabs below. Division Online Stores Transactions (000) 1,266.5 383.5 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. F and A Cost < Required A Required B >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $5.220 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)
$ 74,900
40,700
Online
Stores
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?
Complete this question by entering your answers in the tabs below.
Required A
Transactions
(000)
1,266.5
383.5
Required B
Online
Stores
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
< Required A
Required B >
Transcribed Image Text: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 $5.220 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) $ 74,900 40,700 Online Stores 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? Complete this question by entering your answers in the tabs below. Required A Transactions (000) 1,266.5 383.5 Required B Online Stores 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 < Required A Required B >
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