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 $5.300 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:

	Revenues ($000)	Transactions (000)
Online	$ 78,100	2,066.5
Stores	43,900	783.5

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?

\begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Division } & F and A Cost \\ \hline Online & \\ \hline Stores & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Division } & F and A Cost \\ \hline Online & \\ \hline Stores & \\ \hline \end{tabular}