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please complete requirements part 1,2,3,4 all information is provided Requirements 1. Allocate 2017 fixed corporate-overhead costs to the three divisions using division margin as the
please complete requirements part 1,2,3,4
all information is provided
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 Croft. 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 allocation scheme? Which division would be the least receptive? Why? 4. Which allocation scheme should Kunden Corporation use? Why? How might Croft overcome any objections that may arise from the divisions? Data table Data table Kunden Coeporation has three divisions: pulp, paper, and fibers. Kunden's new controllet, Until now, Kunden Corporation has allocated fixed corponate overtead costs to the Etic Crolt, is reviewing the allocation of fixod corporate-overhead costs to the three divisions on the basis of division margins. Croft anks for a list of costs that divisions. He is presented with the following information for each division for 2017 comprise fixed corporate overhead and suggestar the following new allocation. (Cick the icon to view the data.) bases: IHH (Click the icon to view the fixed corponate overtugd and new alocaton bases) Read the reouirements. Requirement 1 . Alocate 2017 foed corporate-overtead costs to the throe dvisions using dision margn as the alocabon base. What is thach divisionis operating marght percierape (divition maegn munes allocated fixed corporate-overhead costs as a percerenge of reverues)? Alocize the fixed corporate-overhead costs, then cilculate the division oporating margns in dolars and as a percentage of revenve. (Found alocieion propontise te ore iseinal Step by Step Solution
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