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 $1,000,000 and were allocated as follows: Total sales-Last Year Percentage of total sales Allocation based on the above percentages) Rick Harborside $19,360,000 44% $ 440,000 Restaurants Imperial Garden $11, 440,000 26% $ 260,000 Ginger Wok $13, 200,000 38 $ 300,000 Total $44,000,000 100% $ 1,000,000 This year the Imperial Garden restaurant increased its sales by $1 million. The sales levels in the other two restaurants remained unchanged. The company's sales data for this year were as follows: Restaurants Imperial Garden $12, 440,000 28% Ricks Harborside $19,360,000 43% Total sales-This Year Percentage of total sales Ginger WOR $13, 200,000 294, Total 345,000,000 100% Fixed administrative expenses for this year remained unchanged at $1.000.000, Required: 1. Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three restaurants for this year Calculate the change in ench restaurant's allocated cost from last year to this ysan sales dollars a good base for action of fixed cost Complete this question by entering your answers in the tabs below. is TOAT Percentage of total sales $19, 360,000 43% $12, 140,000 28% $13, 200,000 29% $45,000,000 100% Fixed administrative expenses for this year remained unchanged at $1,000,000. Required: 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. 3. Is sales dollars a good base for allocation of fixed costs? 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.) Rio Harborside Imperial Garden Ginger Wok Total 5 0 Fixed administrative expense allocation - current year 2. Change in allocated cost S 0 Ron> Prex a 13 13 Next > Total sales-This Year Percentage of total sales Rieks Harborside $19,360,000 43% Restaurants Imperial Garden $12, 440,000 28% Ginger Wok $13, 200,000 298 Total $45, 800, 900 100% Fixed administrative expenses for this year remained unchanged at $1,000,000, ped Required: 1. Using sales dollars as an allocation base, show the allocation of the fixed administrative expenses among the three re- this year 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 fixed costs? ok TIE Complete this question by entering your answers in the tabs below. nces Reg 1 and 2 Req 3 Is sales dollars a good base for allocation of fixed costs? Yes NO K Reg 1 and 2
