MC Qu. 12-42 Management of Wee Ones (WO), an operator...Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data:BudgetedRevenueActualRevenue$ 477,000 $ 338,100CenterBudgetedDirect Costs$ 286,000457,600ActualDirect Costs$ 321, 200DowntownIrvine715,500499, 100394, 200744,600397,500772,800686,400H. BeachTotals$1,590,000 $1,610,000$1,430,000$1,460,000WO's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $62,000.If advertising expense were allocated to centers based on actual center profitability, the amount of advertising expense allocated to the Irvine center would be closest to:Multiple ChoiceOO$20,486.$21,696.$31,000.$43,359.None of the answers is correct.

Total profitability for all centers = Actual revenue - Actual direct cost = $1610000 - $1460000 =…

MC Qu. 12-42 Management of Wee Ones (WO), an operator... Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data: Actual Budgeted Revenue Actual Revenue $ 477,000 $ 338,100 Center Budgeted Direct Costs $ 286,000 Downtown Irvine Direct Costs $ 321,200 394, 200 744,600 715,500 499, 100 457,600 H.Beach 397,500 772,800 686,400 Totals $1,590,000 $1,610,000 $1,430,000 $1,460,000 WO's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $62,000. If advertising expense were allocated to centers based on actual center profitability, the amount of advertising expense allocated to the Irvine center would be closest to: Multiple Choice O O O $20,486. $21,696. $31,000. $43,359. None of the answers is correct.

MC Qu. 12-42 Management of Wee Ones (WO), an operator... Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data: Actual Budgeted Revenue Actual Revenue $ 477,000 $ 338,100 Center Budgeted Direct Costs $ 286,000 Downtown Irvine Direct Costs $ 321,200 394, 200 744,600 715,500 499, 100 457,600 H.Beach 397,500 772,800 686,400 Totals $1,590,000 $1,610,000 $1,430,000 $1,460,000 WO's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $62,000. If advertising expense were allocated to centers based on actual center profitability, the amount of advertising expense allocated to the Irvine center would be closest to: Multiple Choice O O O $20,486. $21,696. $31,000. $43,359. None of the answers is correct.

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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