Sheffield Plus has outgrown its current building and needs to find additional storage space. The company currently operates three divisions, Carpet, Tile, and Vinyl. The needs of each division are as follows. Carpet Tile Vinyl Square Footage Needs 1,410 810 1,210 Each division tried to separately find their own rental space. The carpet division found what it needed for $600 per month, the tile division’s quote came in at $470 per month, and the Vinyl division found a space for $810 per month. The company manager feels it would be more beneficial for the company to find one space that all three divisions can share. The larger facility came in at $1,410 per month, and the manager chose to rent that space. Now he needs to decide how to allocate the common costs to all three divisions. (a) Determine how much cost will be allocated to each division if the manager uses the stand-alone method. (Do not round the intermediate calculations. Round answers to 0 decimal places, e.g. 5,275.) Carpet $enter a dollar amount Tile $enter a dollar amount Vinyl $enter a dollar amount (b) Determine how much cost will be allocated to each division if the manager uses the incremental method. Carpet $enter a dollar amount Tile $enter a dollar amount Vinyl $
Sheffield Plus has outgrown its current building and needs to find additional storage space. The company currently operates three divisions, Carpet, Tile, and Vinyl. The needs of each division are as follows. Carpet Tile Vinyl Square Footage Needs 1,410 810 1,210 Each division tried to separately find their own rental space. The carpet division found what it needed for $600 per month, the tile division’s quote came in at $470 per month, and the Vinyl division found a space for $810 per month. The company manager feels it would be more beneficial for the company to find one space that all three divisions can share. The larger facility came in at $1,410 per month, and the manager chose to rent that space. Now he needs to decide how to allocate the common costs to all three divisions. (a) Determine how much cost will be allocated to each division if the manager uses the stand-alone method. (Do not round the intermediate calculations. Round answers to 0 decimal places, e.g. 5,275.) Carpet $enter a dollar amount Tile $enter a dollar amount Vinyl $enter a dollar amount (b) Determine how much cost will be allocated to each division if the manager uses the incremental method. Carpet $enter a dollar amount Tile $enter a dollar amount Vinyl $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sheffield Plus has outgrown its current building and needs to find additional storage space. The company currently operates three divisions, Carpet, Tile, and Vinyl. The needs of each division are as follows.
Each division tried to separately find their own rental space. The carpet division found what it needed for $600 per month, the tile division’s quote came in at $470 per month, and the Vinyl division found a space for $810 per month. The company manager feels it would be more beneficial for the company to find one space that all three divisions can share. The larger facility came in at $1,410 per month, and the manager chose to rent that space. Now he needs to decide how to allocate the common costs to all three divisions.
|
Carpet
|
Tile
|
Vinyl
|
||||
|---|---|---|---|---|---|---|
|
Square Footage Needs
|
1,410 | 810 | 1,210 |
Each division tried to separately find their own rental space. The carpet division found what it needed for $600 per month, the tile division’s quote came in at $470 per month, and the Vinyl division found a space for $810 per month. The company manager feels it would be more beneficial for the company to find one space that all three divisions can share. The larger facility came in at $1,410 per month, and the manager chose to rent that space. Now he needs to decide how to allocate the common costs to all three divisions.
(a)
Determine how much cost will be allocated to each division if the manager uses the stand-alone method. (Do not round the intermediate calculations. Round answers to 0 decimal places, e.g. 5,275.)
|
Carpet
|
$enter a dollar amount | |
|---|---|---|
|
Tile
|
$enter a dollar amount | |
|
Vinyl
|
$enter a dollar amount |
(b)
Determine how much cost will be allocated to each division if the manager uses the incremental method.
|
Carpet
|
$enter a dollar amount | |
|---|---|---|
|
Tile
|
$enter a dollar amount | |
|
Vinyl
|
$ |
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