= Homework: Chapter 15 Cost Allocation Question 4, E15-24 (similar to) Part 1 of 5 HW Score: 15.69%, 1.88 of 12 points Points: 0 of 2 Save Bethany Corporation has three divisions: pulp, paper, and fibers. Bethany's new controller, Ben Houseman, is reviewing the allocation of fixed corporate-overhead costs to the three divisions. He is presented with the following information for each division for 2020: (Click the icon to view the data.) Until now, Bethany Corporation has allocated fixed corporate-overhead costs to the divisions on the basis of division margins. Houseman asks for a list of costs that comprise fixed corporate overhead and suggests the following new allocation bases: (Click the icon to view the fixed corporate overhead and new allocation bases.) Read the requirements. Requirement 1. Allocate 2020 fixed corporate-overhead costs to the three divisions using division margin as the allocation base. What is each division's operating margin percentage (division margin minus allocated fixed corporate-overhead costs as a percentage of revenues)? Allocate the fixed corporate-overhead costs, then calculate the division operating margins in dollars and as a percentage of revenue. (Round allocation proportions to one decimal place, X.X%, and dollar amounts to the nearest dollar. Enter operating margin percentages to one decimal, X.X%.) Pulp Paper Fibers Division margin Allocated fixed corporate-overhead Operating margin Operating margin % $ 2,600,000 $ 7,300,000 $ 10,100,000 % % % Data table Revenues Pulp 9,300,000 $ Paper Fibers 17,600,000 $ 25,900,000 Direct manufacturing costs 3,500,000 8,300,000 11,000,000 3,200,000 2,000,000 4,800,000 Division administrative costs $ 2,600,000 $ 7,300,000 $ 10,100,000 Division margin Number of employees 250 150 600 Floor space (square feet) 43,400 26,600 70,000 Print Done Data table Fixed Corporate-Overhead Costs Human resource management Facility Corporate administration Total Suggested Allocation Bases $ 1,900,000 Number of employees 2,900,000 Floor space (square feet) 4,300,000 Division administrative costs $ 9,100,000 Print Done