Lisa Hansen is the manager of American Autos. American Autos provides three types of services, Sales, Repairs, and Rebuilds. Lisaneeds to provide a profit analysis to the CEO at the end of the current fiscal year so the pricing and marketing strategies can beadjusted as needed. She has gathered the following information for the companyCost#of employeesMaint HoursHR HoursRevenue(a)Marketing$207,000SalesRepairs S5Rebuilds S50100SalesRepairs$996.000 $1,307,000Support DepartmentsMaintenance$317,000730025HR$53,000Rebuilds$2.110,000225180Sales$359,0001201001.200Operating UnitsRepairs$871,000161,900850Rebuilds$1.108.0006Allocate the support department costs to the operating units using the reciprocal method. (Do not round the intermediatecalculations. Round answers to O decimal places, a 5.275)2.600800p

Lisa Hansen is the manager of American Autos American Autos provides three types of services, Sales, Repairs, and Rebuilds. Lisa needs to provide a profit analysis to the CEO at the end of the current fiscal year so the pricing and marketing strategies can be adjusted as needed. She has gathered the following information for the company Cost #of employees Maint Hours: HR Hours Revenue Sales Repairs Marketing $207,000 Rebuilds Sales $996.000 Support Departments Maintenance $317,000 5 50 100 Repairs $1.307,000 7 300 25 HR $53,000 Rebuilds $2.110,000 2 25 180 Sales $359,000 12 800 1.200 Operating Units Repairs $871.000 16 1.900 850 Rebuilds $1.108.000 (a) Allocate the support department costs to the operating units using the reciprocal method. (De not round the intermediate calculations. Round answers to O decimal places, eg 5,2753 2,600 800

Lisa Hansen is the manager of American Autos American Autos provides three types of services, Sales, Repairs, and Rebuilds. Lisa needs to provide a profit analysis to the CEO at the end of the current fiscal year so the pricing and marketing strategies can be adjusted as needed. She has gathered the following information for the company Cost #of employees Maint Hours: HR Hours Revenue Sales Repairs Marketing $207,000 Rebuilds Sales $996.000 Support Departments Maintenance $317,000 5 50 100 Repairs $1.307,000 7 300 25 HR $53,000 Rebuilds $2.110,000 2 25 180 Sales $359,000 12 800 1.200 Operating Units Repairs $871.000 16 1.900 850 Rebuilds $1.108.000 (a) Allocate the support department costs to the operating units using the reciprocal method. (De not round the intermediate calculations. Round answers to O decimal places, eg 5,2753 2,600 800

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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