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please complete requirment part 1,2,3,4 Kunden Corporation has theje divisions: pulp, pager, and fibers Kundenis new controller. Eric Crutt, is reviewne the allocation of fored
please complete requirment part 1,2,3,4
Kunden Corporation has theje divisions: pulp, pager, and fibers Kundenis new controller. Eric Crutt, is reviewne the allocation of fored corporate-overhead costs to the three Until now, Kunden Corporation has allocated fored corponate-overtead costs to the divisions on the basis of division margins. Crott asks for a list of coots that divisions the is presented with the followng information for each dwision for 2017 . comprise foxed corporate overhead and suggests the following coww allocation (Cick the icon to view the data.) bases: (Click the icon to view the fixed corporate ovechead and new allocation baner) Read the Requirement 1 . Nlocale 2017 foxed corporate-overhead costs to the three divisions using division margin as the allocation base. What is each dvisions operanting marga percentage. (division marga mines allocated foud corporate-overhead costs as a percentage of cevenues)? Alocate the fixed corporate-overhead costs, then calculate the divsion operating mavgins in dollars and as a percertage of revenue. (Round allocation popouriorn to one decintal phace, X XW, and dollar amounts to the nearest dollar. Epter operating macqin percertages to one docimal, XX XE, ) Data table Data table 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? Kunden Corporation has theje divisions: pulp, pager, and fibers Kundenis new controller. Eric Crutt, is reviewne the allocation of fored corporate-overhead costs to the three Until now, Kunden Corporation has allocated fored corponate-overtead costs to the divisions on the basis of division margins. Crott asks for a list of coots that divisions the is presented with the followng information for each dwision for 2017 . comprise foxed corporate overhead and suggests the following coww allocation (Cick the icon to view the data.) bases: (Click the icon to view the fixed corporate ovechead and new allocation baner) Read the Requirement 1 . Nlocale 2017 foxed corporate-overhead costs to the three divisions using division margin as the allocation base. What is each dvisions operanting marga percentage. (division marga mines allocated foud corporate-overhead costs as a percentage of cevenues)? Alocate the fixed corporate-overhead costs, then calculate the divsion operating mavgins in dollars and as a percertage of revenue. (Round allocation popouriorn to one decintal phace, X XW, and dollar amounts to the nearest dollar. Epter operating macqin percertages to one docimal, XX XE, ) Data table Data table 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 Step by Step Solution
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