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please complete all parts 1,2,3,4 Requirement 2. Allocate 2017 toced costs using the allocation bases suggested by Crolt. What is ench division's operating marpin percentage
please complete all parts 1,2,3,4
Requirement 2. Allocate 2017 toced costs using the allocation bases suggested by Crolt. What is ench division's operating marpin percentage under the new aliocation sezema? Allocate the fixed copporate-ovetroad costs, then calculate the division ogerating magins in doliars and as a percentage of revenue. (Hound alocibon proportons ia ore decima Aequirement 3. Compare and dsciss the resuls of toqurements 1 and 2 If division porformance incentives ate based ori operating margni percertage, which deverion moult be mont seceptive to the rew alocation scheme? Which division would be the least recepeive? Why? When corporate orectweikt is allocated to Ehe dvisions on the basis of dvision mavion (requirement 1). ace (is) proftahle and the Faper" divicon is the Pial dision is not goofitatile and the division is the mont protatibe docreake to a lost (cegritive operating margit) will weicome the change-its gperating marya percentage tises the most. Flequirement 4. Which allocition sctwene should Kunden Corporation ise? Why? How might Ciof overcome any obyections that may ardise from the divisione? The is pelenutle becasio it a based oa cause and eflect relacomshps becween costs and their respective cost divers in the long sun. To overeane oogection form ther dyiskors, Crati may corponate overhead to dvisions when evaluating performance Requirements 1. Allocate 2017 fixed 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)? 2. Allocate 2017 fixed costs using the allocation bases suggested by Becker. What is each division's operating margin percentage under the new allocation scheme? 3. Compare and discuss the results of requirements 1 and 2. If division performance incentives are based on operating margin percentage, which division would be most receptive to the new alloc ation scheme? Which division would be the least receptive? Why? 4. Which allocation scheme should Kunden Corporation use? Why? How might Becker overcome any objections that may arise from the divisions? Kunden Comoration has three divisions: pulp, paper, and tibers. Kundenis new contrale, Unal now. Kunden Copporation has alocaled fored copprete-overhead costs to the Felox Becker, is reviewng the alocation of fixed corporate-overhead costs to the three divisiors on the basis of duision margins. Becker asks for a list of costs that divisions. He is presented weh the following information for each division for 2017 : comprise foced corporate overtiead ard suggests the followng new allocation (Cick the icon to view the dita.) bases: FII (Cick the icon to view ithe fred corporite oreffed and new allocabon bicet) Read the Requirement 1. Alocate 2017 fixed corporate-overhead costs to the three dvisions using division magin as the albcation base. What is aach divisionis opevatire magin bercertage (dvision margin minus aliocated ficed corporate-overhead costs as a percentnge of tevenian)? Alocate the fixed corporate-overhead costs, then caicunte the dvision operating margrs in dolias and as a percentage of revenue; Round aloc ation proporions to one docimal place. X \%. and dollir amourts to the neavest dolar. Enter operaking margin percentagos to che docimal. X. X% ) Data table Data table Step by Step Solution
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