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please complete requriment part 1,2,3,4 Requirements 1. Allocate 2017 fixed corporate-overhead costs to the three divisions using division margin as the allocation base. What is
please complete requriment part 1,2,3,4
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 thee divisions: pulp, paper, and fibers. Kundenis new cortroller. Until now, Kunden Copporition has alocited firted coporateoverieat costs to the Erie Croth, is reviewing the allocation of foxed corporate-overthead costs to the thee divisions on the basis of divian margint Crott arke for a lat of costs that dvisions. He is presented with the following information for each divis ion for 2017 . comprise fixed coposate overhead ard suggeste the following orou Mlocation (Click the icon to view the data) bases [Cick the icon to viow the firad copporate owentead and cew alocution bavine] Read the (division margin minus alocated fixed corporate-ovethead costs as a percentage of revenues)? Allocite the fixed corporate-overtead costs, then calculate the division operiting magins in dollan and as a pencentage of ievenve. (Rourd alecalian susortira to aoe decimal place, , and dolar amounts to the nearest dollar. Enter operasing makgn percentages to one decimal, x.) Data table Data table Step by Step Solution
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