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Brian's Markets, Inc., has three grocery stores in the metropolitan St. Louis area. The company allocates ceentral costs using sales as the cost-allocation base. The
Brian's Markets, Inc., has three grocery stores in the metropolitan St. Louis area. The company allocates ceentral costs using sales as the cost-allocation base. The following are budgeted and actual sales during November: Hamilton Drury Lombard Central costs of $205,000 are to be allocated in November. Requirements 1. Compute the central costs allocated to each store with budgeted sales as the cost-allocation base. 2. Compute the central costs allocated to each store with actual sales as the cost-allocation base. 3. What advantages are there to using budgeted rather than actual sales for allocating the central costs? Budgeted sales $ 560,000 $ 980,000 $ 510,000 Actual sales 560,000 750,000 515,000 Requirement 1. Compute the central costs allocated to each store with budgeted sales as the cost-allocation base. (Do not round interim calculations, and then round to the nearest whole dollar.) Hamilton Drury Lombard
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