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Konig Enterprises, Ltd., owns and operates three restaurants in Vancouver, B.C. The company allocates its fixed administrative expenses to the three restaurants on the basis

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Konig Enterprises, Ltd., owns and operates three restaurants in Vancouver, B.C. The company allocates its fixed administrative expenses to the three restaurants on the basis of sales dollars. Last year the fixed administrative expenses totaled $850,000 and were allocated as follows: Ginger Wok Rent aranta Imperial Garden $11,760,000 280 $ 238,000 Rieks Harborside $17.640,000 420 $ 357,000 Total sales-Last Year Percentage of total sales Allocation based on the above percentagen) 512,600,000 301 $ 255,000 Total 542,000,000 1000 5 850,000 This year the Imperial Garden restaurant increased its sales by S1 million. The sales levels in the other two restaurants remained unchanged. The company's sales data for this year were as follows: Restaurants Rick's Imperial Ginger Harborside Garden Total sales-This Year $17.640,000 $12,760,000 $12,600,000 $43,000,000 Percentage of total sales 410 300 298 1008 Wok Total Fixed administrative expenses for this year remained unchanged at $850,000 Required: 1. Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants for 2. Calculate the change in each restaurant's allocated cost from last year to this year, 3. Is sales dollars a good base for allocation of foxed costs? this year. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 1. Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants for this year. 2. Calculate the change in each restaurant's allocated cost from last year to this year. (Negative amounts should be indicated by a minus sign.) Rick's Imperial Ginger Wok Total Harborside Garden 1. Fixed administrative expense allocation - current year 2. Change in allocated cont Ragi anda Req3 >

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