calculate the operating income of each division when all corporate costs are allocated using the four costs pools

how do yoy think the division managers will receive there new proposal? what are the strengths and weaknesses of evans proposal relative to the existing single cost pool method?

Question Help i Data Table Bollar amounts in milione - X no top S of ns' allocated to each division allocated corporate costs for the most recent year este Suggested Corporate Cost Category Amount Cost Pool Suggested Allocation Base Interest on debt $ 2,600 Cost Pool 1 Identifiable assets Corporate salaries 110 Cost Pool 2 Accounting and control 100 Cost Pool 2 General marketing 260 Cost Pool 2 Division revenues Legal 150 Cost Pool 2 Research and development 290 Cost Pool 2 Public affairs 240 Cost Pool 3 Positive operating income Personnel and payroll 250 Cost Pool 4 Number of employees $ 4,000 Total * Because public affairs cost includes the cost of public relations staff, lobbyists, and donations to environmental charities, Evans proposes that this cost be allocated using operating income (if positive) of divisions, with only divisions with positive operating income included in the allocation base erating ar. Ent to two decimals, XX and $ Print Done Tields and then click Check Answer Check Answer Clear All uirement 3. Calculate the operating income of each division when all corporate costs are allocated using th ar amounts to the nearest dollar. Enter division operating losses with minus signs or parentheses. Complete Oil and Gas Oil and Gas Upstream Downstream 5,600 $ 1,150 $ Chemical Products 1,150 $ Copper Mining (600) perating income llocated corporate costs: Cost pool 1 Cost pool 2 Cost pool 3 Cost pool 4 Division operating income (loss) Enter any number in the edit fields and then click Check Answer 3 5 remaining parts Clear All indows Homework: Chapter 14 Score: 0.22 of 1 pt 5 of 5 (5 complete) HW Score: 59.49%, 2.97 P14-32 (similar to) Question Help Diana Evans, controller of Wortham Oil Company, is preparing a presentation to senior executives about the performance of its four divisions. Summary data (dollar amounts in million related to the four divisions for the most recent year are as follows: (Click the icon to view the summary data) Under the existing accounting system, costs incurred at corporate headquarters are collected in a single cost pool ($4,000 million in the most recent year) and allocated to each divisione the basis of its actual revenues. The top managers in each division share in a division-income bonus pool. Division income is defined as operating income less allocated corporate costs Evans has analyzed the components of corporate costs and proposes that corporate costs be collected in four cost pools. The components of corporate costs for the most recent year (dollar amounts in millions) and Evans' suggested cost pools and allocation bases are as follows: (Click the icon to view the suggested cost pools and allocation bases.) Question Help i Data Table Bollar amounts in milione - X no top S of ns' allocated to each division allocated corporate costs for the most recent year este Suggested Corporate Cost Category Amount Cost Pool Suggested Allocation Base Interest on debt $ 2,600 Cost Pool 1 Identifiable assets Corporate salaries 110 Cost Pool 2 Accounting and control 100 Cost Pool 2 General marketing 260 Cost Pool 2 Division revenues Legal 150 Cost Pool 2 Research and development 290 Cost Pool 2 Public affairs 240 Cost Pool 3 Positive operating income Personnel and payroll 250 Cost Pool 4 Number of employees $ 4,000 Total * Because public affairs cost includes the cost of public relations staff, lobbyists, and donations to environmental charities, Evans proposes that this cost be allocated using operating income (if positive) of divisions, with only divisions with positive operating income included in the allocation base erating ar. Ent to two decimals, XX and $ Print Done Tields and then click Check Answer Check Answer Clear All uirement 3. Calculate the operating income of each division when all corporate costs are allocated using th ar amounts to the nearest dollar. Enter division operating losses with minus signs or parentheses. Complete Oil and Gas Oil and Gas Upstream Downstream 5,600 $ 1,150 $ Chemical Products 1,150 $ Copper Mining (600) perating income llocated corporate costs: Cost pool 1 Cost pool 2 Cost pool 3 Cost pool 4 Division operating income (loss) Enter any number in the edit fields and then click Check Answer 3 5 remaining parts Clear All indows Homework: Chapter 14 Score: 0.22 of 1 pt 5 of 5 (5 complete) HW Score: 59.49%, 2.97 P14-32 (similar to) Question Help Diana Evans, controller of Wortham Oil Company, is preparing a presentation to senior executives about the performance of its four divisions. Summary data (dollar amounts in million related to the four divisions for the most recent year are as follows: (Click the icon to view the summary data) Under the existing accounting system, costs incurred at corporate headquarters are collected in a single cost pool ($4,000 million in the most recent year) and allocated to each divisione the basis of its actual revenues. The top managers in each division share in a division-income bonus pool. Division income is defined as operating income less allocated corporate costs Evans has analyzed the components of corporate costs and proposes that corporate costs be collected in four cost pools. The components of corporate costs for the most recent year (dollar amounts in millions) and Evans' suggested cost pools and allocation bases are as follows: (Click the icon to view the suggested cost pools and allocation bases.)