=+6-38 KKK Allocation of corporate costs to divisions OBJECTIVES 2, 11 Bob Walsh, controller of Wells Oil Ltd, is preparing a presentation to senior executives about the performance of its four divisions.

Summary data (dollar amounts in millions) related to the four divisions for the most recent year are:

32 000 30 000 25 000 3 000 3 200 6 000 16 000 15 000

$

1 000$

$

12 000 3 000 2 000 1

2 3

4 5

6 7

8 A B C D E F Oil & Gas Upstream Oil & Gas Downstream Chemical Products Copper Mining Total Revenues 8 000 4 800 $

Operating costs 3 000 3 800 3 500 25 300 Operating profit 5 000$

$

$ $ $

$

$

1 000$

$

(300) 6 700$

Identifiable assets 14 000 $

Number of employees 9 000 6 000 Divisions