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Restaurants Rick's Imperial Ginger Wok Harborside Garden $16,040,000 34% Total Total sales-This Year $20,210,000 42% $11,750,000 24% $48,000,000 100% Percentage of total sales Fixed administrative expenses for this year remained unchanged at $970,000. Required: 1. Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants for this year. 2. Calculate the change in each restaurant's allocated cost from last year to this year. 3. Is sales dollars a good base for allocation of fixed costs?

Restaurants Rick's Imperial Ginger Wok Harborside Garden $16,040,000 34% Total Total sales-This Year $20,210,000 42% $11,750,000 24% $48,000,000 100% Percentage of total sales Fixed administrative expenses for this year remained unchanged at $970,000. Required: 1. Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants for this year. 2. Calculate the change in each restaurant's allocated cost from last year to this year. 3. Is sales dollars a good base for allocation of fixed costs?

FINANCIAL ACCOUNTING
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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Restaurants Ginger Imperial Garden Rick's Wok $11,750,000 25% Harborside Total $20, 210,000 43% $15,040,000 32% $47,000,000 100% Total sales-Last Year Percentage of total sales Allocation (based on the above percentages) 2$ 417,100 310,400 $. 242,500 $ 970,000 his year the Imperial Garden restaurant increased its sales by $1 million. The sales levels in the other two restaurants remained inchanged. The company's sales data for this year were as follows: Reastaurants Imperial Garden Rick's Ginger Wok Total Harborside $20,210,000 42% $16,040,000 34% $11,750,000 24% $48, е0е, eее 100% Total sales-This Year Percentage of total sales ixed administrative expenses for this year remained unchanged at $970,000. lequired: Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants or this year. . Calculate the change in each restaurant's allocated cost from last vear to this vear. < Prev 8 of 13 Next > rch 近
Transcribed Image Text:Restaurants Ginger Imperial Garden Rick's Wok $11,750,000 25% Harborside Total $20, 210,000 43% $15,040,000 32% $47,000,000 100% Total sales-Last Year Percentage of total sales Allocation (based on the above percentages) 2$ 417,100 310,400 $. 242,500 $ 970,000 his year the Imperial Garden restaurant increased its sales by $1 million. The sales levels in the other two restaurants remained inchanged. The company's sales data for this year were as follows: Reastaurants Imperial Garden Rick's Ginger Wok Total Harborside $20,210,000 42% $16,040,000 34% $11,750,000 24% $48, е0е, eее 100% Total sales-This Year Percentage of total sales ixed administrative expenses for this year remained unchanged at $970,000. lequired: Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants or this year. . Calculate the change in each restaurant's allocated cost from last vear to this vear. < Prev 8 of 13 Next > rch 近
Check my work Restaurants Ginger Wok $11,750,000 24% Rick's Imperial Garden Harborside Total Total sales-This Year $20,210,000 $16,040,000 34% $48,000,000 Percentage of total sales 42% 100% Fixed administrative expenses for this year remained unchanged at $970,000. Required: 1. Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants for this yea. 2. Calculate the change in each restaurant's allocated cost from last year to this year. 3. Is sales dollars a good base for allocation of fixed costs? Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 1. Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants for this - < Prev 8 of 13 Next > ... arch
Transcribed Image Text:Check my work Restaurants Ginger Wok $11,750,000 24% Rick's Imperial Garden Harborside Total Total sales-This Year $20,210,000 $16,040,000 34% $48,000,000 Percentage of total sales 42% 100% Fixed administrative expenses for this year remained unchanged at $970,000. Required: 1. Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants for this yea. 2. Calculate the change in each restaurant's allocated cost from last year to this year. 3. Is sales dollars a good base for allocation of fixed costs? Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 1. Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants for this - < Prev 8 of 13 Next > ... arch
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