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New budget constraints have pressured Body Perfect Gym to control costs. The owner of the gym, Mr, Ripple, has notified division managers that their job

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New budget constraints have pressured Body Perfect Gym to control costs. The owner of the gym, Mr, Ripple, has notified division managers that their job performance evaluations will be highly influenced by their ability to minimize costs. The gym has three divisions: weight lifting, derobics, and spinning. The owner has formulated a report showing how much it cost to operate each of the three divisions last year. In preparing the report, Mr. Ripple jdentified several indirect costs that must be allocated among the divisions. These indirect costs are $4,648 of laundry expense, $49,920 of supplies, $462,000 of office rent, $66,000 of janitorial services, and $144,000 for administrative salaries. To provide a reasonably accurate cost allocation, Mr. Ripple has identified several potential cost drivers. These drivets and their association with each division follow. Required: 3. Identify the most appropriate cost driver for each indirect cost, and compute the allocation rate for assigning each indirect cost to the cost objects. c. Determine the amount of supplies expense that should be allocated to each of the three divisions, . The spinning manager wants to use the number of staff rather than the number of instructors as the allocation base for the supplies expense. What would be the rate of allocation? e. Identify two cost divers other than your choice for Requirement b that could be used to allocate the cost of the administrative salaries to the three divisions. Complete this question by entering your answers in the tabs below. Identify the most appropriate cost driver for each indirect cost, and compute the allocation rate for assigning each indirect cost to the cost objects. b. Identify the most appropriate cost diver for each indirect cost, and compute the allocation rate for assigning each indirect cost to. the cost objects. c. Determine the amount of supplies expense that should be allocated to each of the three divisions. d. The spinning manager wants to use the number of staff rather than the number of instructors as the allocation base for the supplies expense. What would be the rate of allocation? e. Identify two cost drivers other than your choice for Requirement b that could be used to allocate the cost of the administrative salaties to the three divisions. Complete this question by entering your answers in the tabs below. Identify the most appropeiate cost diver for each indirect cost, and compute the allocation rate for assigning each indirect: cost to the cost objects. b. Identify the most appropriate cost driver for each indirect cost, and compute the allocation rate for assigning each indirect cost to the cost objects. c. Determine the amount of supplies expense that should be allocated to each of the three divisions. d. The spinning manager wants to use the number of staff rather than the number of instructors as the allocation base for the supplies expense. What would be the rate of allocation? e. Identify two cost drivers other than your choice for Requirement b that could be used to allocate the cost of the administrative salaries to the three divisions. Complete this question by entering your answers in the tabs below. Identify the most appropriate cost driver for each indirect cost, and compute the allocation rate for assigning each indirect cost to the cost objects. b. Identify the most appropriate cost driver for each indirect cost, and compute the allocation rate for assigning each indirect cost to the cost objects c. Determine the amount of supplies expense that should be allocated to each of the three divisions. d. The spinning manager wants to use the number of staff rather than the number of instructors as the allocation base for the supplies expense. What would be the rate of allocation? e. Identify two cost drivers other than your choice for Requirement b that could be used to allocate the cost of the administrative salaries to the three divisions. Complete this queshon by entering your answers in the tabs below. Determine the amount of supplies expense that should be allocated to each of the three divisions. $462,000 of office rent, $66,000 of janitorial services, and $144,000 for administrative salaries. To provide a reasonably accurate cost allocation. Mr. Ripple has identified several potential cost drivers. These drivers and their association with each division follow. Required: b. Identify the most appropriate cost driver for each indirect cost, and compute the allocation rate for assigning each indirect cost to the cost objects: c. Determine the amount of supplies expense that should be allocated to each of the three divisions d. The spinning manager wants to use the number of staff rather than the number of instructors as the allocation base for the supplies expense. What would be the rate of allocation? e. Identify two cost drivers other than your choice for Requirement b that could be used to allocate the cost of the administrative salaries to the three divisions. Complete this question by erhuring your answers in the tabs below. The spinning manager wants to use the number of staff rather than the number of instructors as the allocation base for the Euppliee expense. What would be the rate of allocation? each division follow. Required: Identify the most appropriate cost driver for each indirect cost, and compute the allocation rate for assigning each indirect cost to the cost objects. c. Determine the amount of supplies expense that should be allocated to each of the three divisions. d. The spinning manager wants to use the number of staff rather than the number of instructors as the allocation base for the supplies expense. What would be the rate of allocation? e. Identify two cost drivers other than your choice for Requirement b that could be used to allocate the cost of the administrative salaries to the three divisions. Complete this question by entering your answers in the tabs below. Identily two cost drivers other than your cholqy for Requirement b that could be used to allocate the cost of the administrative salaries to the three divisions

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