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 $162,000. The following are the operating results for the two stores for the year: Downtown Docklands Sales revenue $ 720,000 $ 900,000 Number of employees 45 30 Required: Allocate the cost of the corporate activities to the two stores based on: Number of employees. store revenue.
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 $162,000. The following are the operating results for the two stores for the year: Downtown Docklands Sales revenue $ 720,000 $ 900,000 Number of employees 45 30 Required: Allocate the cost of the corporate activities to the two stores based on: Number of employees. store revenue.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $162,000. The following are the operating results for the two stores for the year:
| Downtown | Docklands | |
|---|---|---|
| Sales revenue | $ 720,000 | $ 900,000 |
| Number of employees | 45 | 30 |
Required:
-
Allocate the cost of the corporate activities to the two stores based on:
- Number of employees.
- store revenue.
Transcribed Image Text:Req A1
Reg A2
Number of employees.
Allocated accounting corporate costs
Downtown
Req A1
Docklands
$
Total
Req A2 >
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Req A1
Store revenue.
Reg A2
Allocated accounting corporate costs
Downtown
< Req
Docklands
$
Total
Req A2 >
0
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