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------------------ ------------------ ------------------ ------------------ ------------------ Giardin Outdoors is a recreational goods retailer with two divisions: Online and Stores. The two divisions both use the services
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Giardin Outdoors is a recreational goods retailer with two divisions: Online and Stores. The two divisions both use the services of th corporate Finance and Accounting (F and A) Department. Annual costs of the F and A Department total \$5.215 million a year. Managers in the two operating divisions are measured based on division operating profits. The following selected data are available for the two operating divisions: Required: a. What is the F and A cost that is charged to each division if divisional revenues are used as the allocation basis? b. What is the F and A cost that is charged to each division if the the number of transactions is used as the allocation basis? Complete this question by entering your answers in the tabs below. What is the F and A cost that is charged to each division if divisional revenues are used as the allocation basis? Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar. Giardin Outdoors is a recreational goods retailer with two divisions: Online 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 $5.245 million a year. Managers in the two operating divisions are measured based on division operating profits. The following selected data are available for the two operating divisions: Required: Determine the cost allocation if $3.845 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 intermediate calculations. Round your final answers to the nearest whole dollarStep by Step Solution
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