Bright Corporation is organized into two geographic divisions (East and West) and a corporate headquarters. Late in year 1, the Bright Corporation CFO prepared financial operating plans (budgets) for the two divisions, shown as follows. East West Revenues $2, 160,000 $3, 240, 000 Direct division costs 1, 296, 060 1, 512,000 Operating profit before allocation $ 864,000 $1, 728,000 eBook eferences Corporate overhead costs are expected to be $972,000 in year 2 Of the $972,000, $540,000 is fixed and $432,000 is variable, with respect to revenue. Division managers are evaluated and compensated in part on division operating profit relative to the budget Required: a. Suppose corporate overhead is allocated to the two divisions based on relative revenue. What are the budgeted operating profits in each division for year 2 after the corporate costs are allocated? b. At the end of year 2, actual corporate costs incurred were $942,000. Of the $942,000, $565,200 was fixed. Actual results in the two divisions are as shown as follows. East West Revenues $1, 620,060 $3,240,000 Direct costs 1,080,060 1, 512, 060 Operating profit before allocation $ 540,000 $1, 728,060 What are the operating profits in each division for year 2 after the corporate costs are allocated? Grew