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For Chapter 9 Performance Measurement (Allocations) Questions: Suppose a company has three profit centers with the following information: Division D sq. feet occupied total
For Chapter 9 Performance Measurement (Allocations) Questions: Suppose a company has three profit centers with the following information: Division D sq. feet occupied total sales 25,600 396,000 Division E sq. feet occupied Division F total sales 35,200 480,000 sq. feet occupied 19,200 total sales 324,000 headcount 21 headcount 35 headcount 14 Corporate costs are allocated to the divisions as follows: Headquarters Rent Expense is allocated based on square feet occupied Corporate Marketing Expense is allocated based on sales Human Resources Expense is allocated based on headcount Allocate the following costs according to the conventions shown above. Round percentages to the nearest tenth of a percent (for example, 33.5%) and round answers to the nearest whole dollar. Headquarters Rent Expense 350,000 Corporate Marketing Expense 420,000 Human Resources Expense 290,000 Finally, figure total amount allocated to each division.
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