Critter Craze Product-Line Information for the Year Ended December 31, 2020 Critter Craze SG\&A Costs for the Year Ended December 31, 2020 Purchasing department expense Receiving department expense Selling expense Rent Store manager's salary Utilities Total \( \stackrel{\$ 1,654,500}{\hline} \) Pawsh operates a pet supply superstore in Atlanta with three main product lines: Store manager Jack Bagley gathers the following information regarding the food, toys, and accessories. Pawsh allocates common selling, general, and three product lines: administration (SG\&A) costs to each product line using the cost of merchandise of (Click the icon to view the product line information.) each product line. Department manager salaries, while considered SG\&A, are direct and are assigned directly to each product line. The company wants to optimize the For 2020 , Pawsh budgets the following selling, general, and pricing and cost management of each product line and is wondering whether its administration costs: accounting system is providing it with the best information for making such decisions. (Click the icon to view the selling, general, and administration costs.) Requirement 1. Prepare an income statement for Pawsh, by product line and in total, allocating common SG\&A expenses using cost of merchandise. Calculate the profit per square foot of store space for each product line. Start by determining the total selling, general, and administrative (SG\&A) expenses allocated to each department and in total when allocating common SG\&A expenses using cost of merchandise. Requirement 1. Prepare an income statement for Critter Craze, by product line and in total, allocating common SG\&A expenses using cost of merchandise. Calculate the profit per square foot of store space for each product line. 2. Identify an improved method for allocating costs to the three product lines. Explain. Use the method for allocating SG\&A costs that you propose to prepare new product-line income statements. Calculate the profit per square foot of store space for each product line. Compare your results to the results in requirement 1. 3. What recommendations would you make to the store manager based on the results of the activity-based costing analysis? Critter Craze Product-Line Information for the Year Ended December 31, 2020 Critter Craze SG\&A Costs for the Year Ended December 31, 2020 Purchasing department expense Receiving department expense Selling expense Rent Store manager's salary Utilities Total \( \stackrel{\$ 1,654,500}{\hline} \) Pawsh operates a pet supply superstore in Atlanta with three main product lines: Store manager Jack Bagley gathers the following information regarding the food, toys, and accessories. Pawsh allocates common selling, general, and three product lines: administration (SG\&A) costs to each product line using the cost of merchandise of (Click the icon to view the product line information.) each product line. Department manager salaries, while considered SG\&A, are direct and are assigned directly to each product line. The company wants to optimize the For 2020 , Pawsh budgets the following selling, general, and pricing and cost management of each product line and is wondering whether its administration costs: accounting system is providing it with the best information for making such decisions. (Click the icon to view the selling, general, and administration costs.) Requirement 1. Prepare an income statement for Pawsh, by product line and in total, allocating common SG\&A expenses using cost of merchandise. Calculate the profit per square foot of store space for each product line. Start by determining the total selling, general, and administrative (SG\&A) expenses allocated to each department and in total when allocating common SG\&A expenses using cost of merchandise. Requirement 1. Prepare an income statement for Critter Craze, by product line and in total, allocating common SG\&A expenses using cost of merchandise. Calculate the profit per square foot of store space for each product line. 2. Identify an improved method for allocating costs to the three product lines. Explain. Use the method for allocating SG\&A costs that you propose to prepare new product-line income statements. Calculate the profit per square foot of store space for each product line. Compare your results to the results in requirement 1. 3. What recommendations would you make to the store manager based on the results of the activity-based costing analysis
