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Greely Corporation manufactures appliances. It has four di Regerator Stove, Dishwasher and Microwave Oven Each division is located in a different clly and the
Greely Corporation manufactures appliances. It has four di Regerator Stove, Dishwasher and Microwave Oven Each division is located in a different clly and the headquarters is located in Thunder Bay, Onta Headquarters incurs a total of $14.300.000 in costs, none of which are drect costs of any of the divisi (Click to view information for each division and the main headquarters) Gether wants to allocate the indirect costs of headquarters on the basis of either square metres or segment margin for each Requirements 1. Allocate the indirect headquarters costs to each division, first using square mees of space and then using segment margi the allocation bane Calculate the division operating margins after each allocation in dollars and as a percentage of eve 2. Which allocation base do you proter? Why? 3. Should any of the divisions be dropped based on your cautions? Why or why no Requirement 1. Alocate the indirect headquarters costs to each division, fest using square metes of space and then using segment margin as the alocation hase Callate the disin operating margins after each allocation in dollars and as a percentage of revenue Let's begin by allocating costs based on square metres (Enter percentages rounded to one decimal place) Square metres que es Allocated headquarter costs Refrigerator 130,000 Stove 90 000 Dishwasher 70.000 Microwave Oven Total 110.000 % 400.000 100%
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