Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding And Auditing IT Systems Volume 2

Authors: Young-Woon Min

2nd Edition

1257758837, 978-1257758838

More Books

Students also viewed these Accounting questions

Question

8. Explain the contact hypothesis.

Answered: 1 week ago

Question

2. Define the grand narrative.

Answered: 1 week ago