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1. Using sales dollars as an allocation base, show the allocation of the fixed administrative-expenses among the three restaurants year. 2. Calculate the change in
1. Using sales dollars as an allocation base, show the allocation of the fixed administrative-expenses among the three restaurants year. 2. Calculate the change in each restaurant's allocated cost from last year to this year. Note: Negative amounts should be indicated by a minus sign. Konig Enterprises owns and operates three restaurants. The company allocates its fixed administrative expenses to those restaurants based on sales dollars. Last year the fixed administrative expenses totaled $820,000 and were allocated as follows: This year Imperial Garden increased its sales by $12.5 million. The sales levels in the other two restaurants remained unchajged. The company's sales data for this year were as follows: Fixed administrative expenses for this year remained unchanged at $820,000. Required: 1. Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants for this year. 2. Colculate the change in each restaurant's allocated cost from last year to this year. Is sales dollars a good base for allocation of fixed costs? Is sales dollars a good base for allocation of fixed costs
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