Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A1A Manufacturing has four divisions: Acme, Dune, Stark, and Brothers. Corporate headquarters is in Regina. A1A corporate headquarters incurs costs of $17,600,000 per period, which

image text in transcribed

A1A Manufacturing has four divisions: Acme, Dune, Stark, and Brothers. Corporate headquarters is in Regina. A1A corporate headquarters incurs costs of $17,600,000 per period, which is an indirect cost of the divisions. Corporate headquarters currently allocates this cost to the divisions based on the revenues of each division. The CEO has asked each division manager to suggest an allocation base for the indirect headquarters costs from among revenues, segment margin, direct costs, and number of employees. The relevant information about each division is provided. (Click the icon to view the relevant division information.) Required Requirement 1. Allocate the indirect headquarters costs of A1A Manufacturing to each of the four divisions using revenues, direct costs, segment margin, and number of employees as the allocation bases. Calculate operating margins for each division after allocating headquarters costs. Allocate the indirect headquarters costs of A1A Manufacturing to each of the four divisions using the revenues. (Round your answers to the nearest dollar. Round intermediate percentages to two decimal places, X.XX%. Enter negative operating margins with parentheses or a minus sign.) - i X Dune Relevant division information Acme Stark Brothers Total Segment margin Less: headquarter costs Acme Dune Stark Brothers Division operating margin Revenues $ 23,440,000 $25,560,000 $ 18,580,000 $16,450,000 Direct Costs 15,980,000 12,400,000 12,940,000 13,870,000 $ 7,460,000 $ 13,160,000 Segment margin $ 5,640,000 $ 2,580,000 Enter any number in the edit fields and then click Check Answer. Number of employees 6,100 12,200 4,600 1,650

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

Students also viewed these Accounting questions

Question

What is the relationship between humans and nature?

Answered: 1 week ago