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Murden Corporation has three divisions pulp, paper, and fibers. Murden's new controller, Tim Houseman, is reviewing the allocation of fixed corporate overhead costs to
Murden Corporation has three divisions pulp, paper, and fibers. Murden's new controller, Tim Houseman, is reviewing the allocation of fixed corporate overhead costs to the three divisions Heis presented with the following information for each division for 2017 (Click the icon to view the data) Until now, Murden Corporation has allocated fixed corporate overhead costs to the divisions on the basis of division margins. Houseman asks for a lint of costs that comprise fired corporate overhead and suggests the following new allocation bases (Click the icon to view the faxed corporate overhead and new a sew allocation bases) Read the requirements Requirement 1. Allocate 2017 Rxed 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, XX%, and dollar amounts to the nearest dollar. Enter operating margin percentages to one decimal, XX%) Division margin Pulp Paper Fibers $ 2.500.000 $ 7,200,000 $ 10,300,000 Allocated fixed corporate overhead Operating margin Operating margin %
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