Problem 12-49 (Static) Dual and Single Allocation Rates (LO 12-6) Stable Enterprises is organized into two geographic divisions (Asia and Europe) and a corporate headquarters. Late in year 7, the Stable Finance Department prepared financial operating plans (budgets) for the two divisions, shown as follows (in thousands of dollars). Revenues Direct division costs Operating profit before allocation Asia $28,600 14,300 $14,300 Europe $36, 400 21,840 $14,560 Corporate overhead costs (in thousands of dollars) are expected to be $15,000 in year 8. Of the $15,000, $8,500 is fixed and $6,500 is variable, with respect to revenue. Division managers are evaluated and compensated in part on division operating profit relative to the budget. Required: a. Suppose corporate overhead is allocated to the two divisions based on relative revenue. What are the budgeted operating profits in each division for year 8 after the corporate costs are allocated? b. At the end of year 8, actual corporate costs incurred in thousands of dollars) were $14,000. Of the $14,000, $8,000 was fixed. Actual results (in thousands of dollars) in the two divisions are as follows. Revenues Direct costs Operating profit before allocation Asia $28,600 14,300 $14,300 Europe $36,400 21,840 $14,560 What are the operating profits in each division for year 8 after the corporate costs are allocated? What are the operating profits in each division for year 8 after the corporate costs are allocated? Complete this question by entering your answers in the tabs below. Required A Required B Required B Suppose corporate overhead is allocated to the two divisions based on relative revenue. What are the budgeted operating profits in each division for year 8 after the corporate costs are allocated? (Do not round intermediate calculations.) Asia Total Revenues $ Europe 14,560 (8,400) 6,160 $ 14,300 $ (6,600) 7,700 $ Direct costs 0 Operating profit before allocations Corporate costs Operating profit $ 7,700 $ 6,160 $ 0 Required A Required B > What are the operating profits in each division for year 8 after the corporate costs are allocated? Complete this question by entering your answers in the tabs below. Required A Required B What are the operating profits in each division for year 8 after the corporate costs are allocated? (Do not round intermediate calculations.) Total Revenues $ Asia Europe 14,300 $ 145,600 (6,160) | (7,840) 8,140 $ 137,760 $ Direct costs 0 Operating profit before allocations Corporate costs Operating profit 8,140 $ 137,760 $ 0