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Problem 2-68 (Algo) Cost Allocation with Cost Flow Diagram (LO 2-3) Merton Electronics operates two retail outlets in Port Wren, one downtown and the
Problem 2-68 (Algo) Cost Allocation with Cost Flow Diagram (LO 2-3) Merton Electronics operates two retail outlets in Port Wren, one downtown and the other in Docklands. The stores share the use of a corporate staff responsible for functions such as personnel, IT, marketing, purchasing, and so on. The cost of the corporate activities for last year was $486,000. The following are the operating results for the two stores for the year: Sales revenue Number of employees Required: Downtown Docklands $ 734,400 $ 918,000 45 30 a. Allocate the cost of the corporate activities to the two stores based on: 1. Number of employees. 2. Store revenue. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Req A1 Req A2 Store revenue. Allocated accounting department cost Downtown Docklands Total < Req A1 Req A2 >
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