Exercise 11-10 (Algo) Sales Dollars as an Allocation Base for Fixed Costs [LO11-4] Konig Enterprises owns and operates three restaurants. The company allocates its fixed administrative expenses to those restaurants based on sales dollars. Last year the fixed administrative expenses totaled $840,000 and were allocated as follows: Restaurants Rick's Harborside Imperial Garden Ginger Wok Total Total sales-Last Year $ 27, 000, 000 $ 21, 000 , 000 $ 12, 000, 000 $ 60, 000, 000 Percentage of total sales 45% 35% 208 100% Allocation (based on the above percentages ) $ 378, 000 $ 294, 000 $ 168, 000 $ 840, 000 This year Imperial Garden increased its sales by $15 million. The sales levels in the other two restaurants remained unchanged. The company's sales data for this year were as follows: Restaurants Rick's Harborside Imperial Garden Ginger Wok Total Total sales-This Year $ 27, 000, 000 $ 36, 000, 000 $ 12, 000, 000 $ 75 , 000, 000 Percentage of total sales 368 48% 168 1008 Fixed administrative expenses for this year remained unchanged at $840,000. Required: 1. Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants for this year. 2. Calculate the change in each restaurant's allocated cost from last year to this year. 3. Is sales dollars a good base for allocation of fixed costs?Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 1. Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants for this year. 2. Calculate the change in each restaurant's allocated cost from last year to this year. Note: Negative amounts should be indicated by a minus sign. Rick's Imperial Harborside Garden Ginger Wok Total 1. Fixed administrative expense allocation - current year 0 2. Change in allocated cost 0 Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Is sales dollars a good base for allocation of fixed costs? OYes ONO