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E2.13 Assume that a food division reported sales revenue of $337,218 and the bar-lounge reported sales revenue of $206,682. Indirect costs (IC) of $52,00 are
E2.13 Assume that a food division reported sales revenue of $337,218 and the bar-lounge reported sales revenue of $206,682. Indirect costs (IC) of $52,00 are to be allocated to each division on the basis of sales revenue. [Food: Food sales/Total sales = Food %] [Bar: Bar sales/Total sales = Bar%] Food division: IC Food %=S b. Bar division: IC x Bar % = $ a. What is the allocated amount of indirect costs to the food division? b. What is the allocated amount of indirect costs to the beverage division?
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