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Nolan's Markets, Inc., has three grocery stores in the metropolitan Tampa area. Central costs of $195,000 are to be allocated in November. The company allocates
Nolan's Markets, Inc., has three grocery stores in the metropolitan Tampa area. Central costs of $195,000 are to be allocated in November. The company allocates ceentral costs using sales as the cost-allocation base. Requirements The following are budgeted and actual sales during November: 1. Compute the central costs allocated to each store with budgeted sales as Irving Noble Callowhill the cost-allocation base. 2. Compute the central costs allocated to each store with actual sales as the Budgeted sales $ 550,000 $ 1,060,000 $ 390,000 cost-allocation base. Actual sales 550,000 715,000 485.000 3. What advantages are there to using budgeted rather than actual sales for allocating the central costs? Requirement 1. Compute the central costs allocated to each store with budgeted sales as the cost-allocation base. (Do not round interim calculations, and then round to the nearest whole dollar.) Irving Noble Callowhill
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