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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 the corporate Finance and
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 and A Department. Annual costs of the F and A Department total $ 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 and A cost that is charged to each division if divisional revenues are used as the allocation basis?
b What is the 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.
Required A
What is the 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.
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