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Revenues Transactions (seee) $ 74,100 39,900 (000) 1,066.5 283.5 cost allocation if $3.8 million of the F and A re variable, are allocated on the basis of tran round intermediate calculations. Enter your

Revenues Transactions (seee) $ 74,100 39,900 (000) 1,066.5 283.5 cost allocation if $3.8 million of the F and A re variable, are allocated on the basis of tran round intermediate calculations. Enter your

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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Giardin Outdoors is a recreational goods retaller with two divisions: Online and Stores. The two divisions both use the services of the corporate Finance and Accounting (F and A) Department. Annual costs of the F and A Department total $5.2 million a year. Managers In the two operating divisions are measured based on division operating profits. The following selected data are available for the two operating divisions: Online Stores Revenues ($000) $ 74,100 39,900 Fixed Variable Total Required: Determine the cost allocation if $3.8 million of the F and A costs are fixed and allocated on the basis of revenues, and the remaining costs, which are variable, are allocated on the basis of transactions. Note: Do not round intermediate calculations. Enter your answers in dollars, not in millions or thousands. Transactions (800) 1,066.5 283.5 Online Stores
Transcribed Image Text:Giardin Outdoors is a recreational goods retaller with two divisions: Online and Stores. The two divisions both use the services of the corporate Finance and Accounting (F and A) Department. Annual costs of the F and A Department total $5.2 million a year. Managers In the two operating divisions are measured based on division operating profits. The following selected data are available for the two operating divisions: Online Stores Revenues ($000) $ 74,100 39,900 Fixed Variable Total Required: Determine the cost allocation if $3.8 million of the F and A costs are fixed and allocated on the basis of revenues, and the remaining costs, which are variable, are allocated on the basis of transactions. Note: Do not round intermediate calculations. Enter your answers in dollars, not in millions or thousands. Transactions (800) 1,066.5 283.5 Online Stores
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