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Championship Sports Inc. operates two divisions-the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial
Championship Sports Inc. operates two divisions-the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31,20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: The bases to be used in allocating expenses, together with other information, are as follows: a. Advertising expense-incurred at headquarters, charged back to divisions on the basis of usage: Winter Sports Division, $375,000; Summer Sports Division, $781,000. b. Transportation expense-charged back to divisions at a charge rate of $5.00 per bill of lading: Winter Sports Division, 17,500 bills of lading; Summer Sports Division, 35,000 bills of lading. c. Accounts receivable collection expense-incurred at headquarters, charged back to divisions at a charge rate of $2.00 per invoice: Winter Sports Division, 23,000 sales invoices; Summer Sports Division, 44,000 sales invoices. d. Warehouse expense-charged back to divisions on the basi $ of floor space used in storing division products: Winter Sports Division, 66,000 square feet; Summer Sports Division, 80,000 square feet. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Comp Problem 3 - Managerial Divisional selling and administrative expenses: Divisional selling expenses Divisional administrative expenses Total divisional selling and administrative expenses Operating income before support department allocations Support department allocations: Advertising expense Transportation expense Accounts receivable collection expense Warehouse expense Total support department allocations Operating income Provide supporting computations for support department allocations. If required, round per unit amounts to two decimal places and final answers to the nearest dollar. Comp Problem 3 - Managerial Total support department allocations Operating income Provide supporting computations for support department allocations. If required, round per unit amounts to two decimal places and final answers to the nearest dollar. Championship Sports Inc. Support Department Allocations For the Year Ended December 31, 20Y9 Advertising expense Transportation rate per bill of lading Number of bills of lading Transportation expense Accounts receivable collection rate Number of sales invoices Accounts receivable collection expense Warehouse rate per sq. ft. Number of square feet Warehouse expense
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