Pioneer Markets has three grocery stores in a metropolitan area.

Central costs are allocated using sales as the cost driver. The following are budgeted and actual sales during November:

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SUNNYVILLE YORKVILLE DISCOUNTVILLE Budgeted sales Actual sales $600,000 $600,000 $1,000,000 $700,000 $400,000 $500,000 Central costs of $200,000 are to be allocated in November. 1. Compute the central costs allocated to each store with budgeted sales as the cost driver. 2. Compute the central costs allocated to each store with actual sales as the cost driver. 3. What advantages are there to using budgeted rather than actual sales for allocating the central costs?