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My Question : how do you get cost allocation for each ? Marketing for Web Design = ? Marketing for Maintenance = ? Marketing for
My Question : how do you get cost allocation for each ?
Marketing for Web Design = ? Marketing for Maintenance = ? Marketing for Hosting = ?
and Administration and NetIncome too ? ANY Formula to allocate ?
a. The following table presents a revised set of financial statements that report profit centers' net income after allocating the marketing and administration costs back to the three profit centers using revenues as the allocation base Allocation using revenuesWeb Design Web Maintenance Web Hosting Total Revenue $650,000 $1,240,000 $1,180,000 $3,070,000 Operating expenses Operating income Marketing (610,000) (887,000) (329,000) (1,826,000) $851,000 $1,244,000 (180,143)171,427) (446,000) (281,928)(268,287) 698,000) $411,287 $100,000 $40,000 $353,000 (94,430) (147,785) ($202,215) Administration 109,072)$ Net income Provide feedback (0) Step 2 of3 b. Web design and web maintenance now report losses and web hosting reports profits
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