indirect hoodewariors costs from among revenues, segment margn, diect costs, and number of employees. The relovant insormabe abouf each division is provided. (i) (Clok the icon to vew the relevant disision information) Requirement 1. Alocate the indiect headcasiers cosss of Reidland Manulacturng to each of the four disions using revenues, drect costs, segmont margn, and numbot df employees as the alocaton bases Calculate operating margins for esch diveion afler allocating headquarters costs Abcale the indrect headquaters costs of Reedand Manutacturing to each of the four divsions using the fevenues. (Round your answers io the mesies dolar Round itlemedialo percontages to two docmal placos 0 : Enter negative operating marginis with parentheses or a mives segn) acturing has four divisions: Acme, Dune, Stark, and Brothers. Corporate headquarters is in Minnesota. Reidland corporate headquarters ons. Corporate headquarters currently allocates this cost to the divisions based on the revenues of each division. The CEO has asked ea arters costs from among revenues, segment margin, direct costs, and number of employees. The relevant information about each division on to view the relevant division information.) Relevant division information Manufacturing has four divisions: Acme, Dune, Stark, and Brothers. Corporate headquarters is in Minnesota. Reidland corporate headqu divisions. Corporate headquarters currently allocates this cost to the divisions based on the revenues of each division. The CEO has a eadquarters costs from among revenues, segment margin, direct costs, and number of employees. The relevant information about each the icon to view the relevant division information.) Required 1. Allocate the indirect headquarters costs of Reidland Manufacturing to each of the four divisions using revenues, direct costs, segment margin, and number of employees as the allocation bases. Calculate operating margins for each division after allocating headquarters costs. 2. Which allocation base do you think the manager of the Brothers division would prefer? Explain. 3. What factors would you consider in deciding which allocation base Reidland should use? 4. Suppose the Reidland CEO decides to use direct costs as the allocation base. Should the Brothers division be closed? Why or why not? (this the icon ta yorw the ieicriant divion mitorination) Cakiale eperatirg margis kor each divisicon after allocating hoadquarters costs places X XXS. Entar nogabies operating margins aith parentheses or a matus sigs? (i) (Ckck the roon bo ver he relevant divisoti informanon) Hsiated places, 0. Enter ntgatve epteatiog marghs wth parereveses or a minus sog) Relevant division information ggment margin. nearest dollar our divisions: Acme, Dune, Stark, and Brothers. Corporate headquarters is in Minnesota. Reidland cor e headquarters currently allocates this cost to the divisions based on the revenues of each division. Th m among revenues, segment margin, direct costs, and number of employees. The relevant informatic relevant division information.) Required 1. Allocate the indirect headquarters costs of Reidland Manufacturing to each of the four divisions using revenues, direct costs, segment margin, and number of employees as the allocation bases. Calculate operating margins for each division after allocating headquarters costs 2. Which allocation base do you think the manager of the Brothers division would prefer? Explain. 3. What factors would you consider in deciding which allocation base Reidland should use? 4. Suppose the Reidland CEO decides to use direct costs as the allocation base. Should the Brothers division be closed? Why or why not
