Preparing a flexible budget for general expenses. The Marietta Company has four sales divisions. It allocates all
Question:
Preparing a flexible budget for general expenses. The Marietta Company has four sales divisions. It allocates all general office expenses to these divisions.
Fixed expenses of $24,000 per month are allocated equally to the divisions. All other expenses are allocated on the basis of sales.
For the month of December 19X5, the sales were: $800,000 for Division A;
$1,000,000 for Division B; $1,200,000 for Division C; and $900,000 for Division D. The total general office expenses for the month were $38,000. How much of the general office expenses would be allocated to each division for the month?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Cost Accounting Principles And Applications
ISBN: 9780070081529
5th Edition
Authors: Horace R. Brock
Question Posted: