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Exercise 12-38 (Static) Single versus Dual Rates (LO 12-6) Glardin Outdoors is a recreational goods retailer with two divisions: Oniline and Stores. The two divisions
Exercise 12-38 (Static) Single versus Dual Rates (LO 12-6) Glardin Outdoors is a recreational goods retailer with two divisions: Oniline and Stores. The two divisions both use the services of the corporate Finance and Accounting (F and A) Department. Annual costs of the F and A Department total \$5.2 million a year. Managers In the two operating divisions are measured based on division operating profits. The following selected data are avallable for the two operating divisions: Required: Determine the cost allocation if $3.8 million of the F and A costs are fixed and allocated on the basis of revenues, and the remaining costs, which are variable, are allocated on the basis of transactions. Note: Do not round Intermedlate calculations. Enter your answers In dollars, not In millions or thousands
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