Merton Electronics operates two retail outlets in Port Wren, one downtown and the other in Docklands. The stores share the use of a corporate staff responsible for functions such as personnel, IT, marketing, purchasing, and so on. The cost of the corporate activities for last year was $194,400. The following are the operating results for the two stores for the year: Sales revenue Number of employees Required: a. Allocate the cost of the corporate activities to the two stores based on: 1. Number of employees. 2. Store revenue. (Do not round intermediate calculations.) Req A1 Complete this question by entering your answers in the tabs below. Number of employees. Req A2 Allocated accounting department cost Req A1 Store revenue. Downtown $ 721,440 45 Req A2 Allocated accounting department cost Downtown < Req A1 Docklands $ 901,800 30 Downtown < Req A1 Docklands Docklands $ Total Req A2 > $ Total Req A2 >
Merton Electronics operates two retail outlets in Port Wren, one downtown and the other in Docklands. The stores share the use of a corporate staff responsible for functions such as personnel, IT, marketing, purchasing, and so on. The cost of the corporate activities for last year was $194,400. The following are the operating results for the two stores for the year: Sales revenue Number of employees Required: a. Allocate the cost of the corporate activities to the two stores based on: 1. Number of employees. 2. Store revenue. (Do not round intermediate calculations.) Req A1 Complete this question by entering your answers in the tabs below. Number of employees. Req A2 Allocated accounting department cost Req A1 Store revenue. Downtown $ 721,440 45 Req A2 Allocated accounting department cost Downtown < Req A1 Docklands $ 901,800 30 Downtown < Req A1 Docklands Docklands $ Total Req A2 > $ Total Req A2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject - Accounting
Transcribed Image Text:Merton Electronics operates two retail outlets in Port Wren, one downtown and the other in Docklands. The stores share the use of a
corporate staff responsible for functions such as personnel, IT, marketing, purchasing, and so on. The cost of the corporate activities
for last year was $194,400. The following are the operating results for the two stores for the year:
Sales revenue
Number of employees
Required:
a. Allocate the cost of the corporate activities to the two stores based on:
1. Number of employees.
2. Store revenue.
(Do not round intermediate calculations.)
Req A1
Complete this question by entering your answers in the tabs below.
Number of employees.
Req A2
Allocated accounting department cost
Req A1
Store revenue.
Downtown
$ 721,440
45
Req A2
Allocated accounting department cost
Downtown
< Req A1
Docklands
$ 901,800
30
Downtown
< Req A1
Docklands
Docklands
$
Total
Req A2 >
$
Total
Req A2 >
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