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Merton Electronics operates two retail outlets in Port Wren, one downtown and the other in Docklands. The stores share the use of a corporate
Merton Electronics operates two retail outlets in Port Wren, one downtown and the other in Docklands. The stores share the use of a corporate staff responsible for functions such as personnel, IT, marketing, purchasing, and so on. The cost of the corporate activities for last year was $324,000. The following are the operating results for the two stores for the year: Sales revenue Downtown $ 727,200 Docklands $ 909,000 45 30 Number of employees Required: a. Allocate the cost of the corporate activities to the two stores based on: 1. Number of employees. 2. Store revenue. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req A1 Req A2 Number of employees. Downtown Docklands Total Allocated accounting department cost $ 0 2-3) Merton Electronics operates two retail outlets in Port Wren, one downtown and the other in Docklands. The stores share the use of a corporate staff responsible for functions such as personnel, IT, marketing, purchasing, and so on. The cost of the corporate activities for last year was $324,000. The following are the operating results for the two stores for the year: Sales revenue Downtown $ 727,200 Docklands $ 909,000 45 30 Number of employees Required: a. Allocate the cost of the corporate activities to the two stores based on: 1. Number of employees. 2. Store revenue. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req A1 Req A2 Store revenue. Downtown Docklands Total Allocated accounting department cost $ 0
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